Dollar falls while gold and US Treasury bonds rally as markets react to Democrats’ midterm election victory – business live

Democrats’ capture of Congress raise expectations of tougher regulation of AI sector; US stock futures turn positive, reversing earlier declines US stock futures have turned positive ahead of the Wall Street open later, as investors continue to assess the implications of the blue

Democrats’ capture of Congress raise expectations of tougher regulation of AI sector; US stock futures turn positive, reversing earlier declines US stock futures have turned positive ahead of the Wall Street open later, as investors continue to assess the implications of the blue wave across the US, with the Democrats winning control of Congress. Dow Jones futures are up 0.4%, while S&P 500 and futures for the tech-heavy Nasdaq have both edged about 0.15% higher. Greg Abbott ’s loss of the Texas governorship means that the construction of more data centres is now open to question.

We saw this overnight with weakness in the AI stocks like CoreWeave and Nebius , and while there has been some recovery the questions about how this plays out will continue to dog a sector already grappling with spending worries. Now legislation concerns are on the list too. I think the fear is that the pace of the AI infrastructure rollout could slow, potentially quite markedly in Texas, as they start to digest exactly what mandate they might have in terms of AI.

Going into this, we were talking about the importance of the Texas and Georgia governor races. Those two states effectively make up about a third of all AI datacentre spend and projects. If both of those go Democrat at the governor level [they did], the potential for it to slow is very much there, and that would obviously cascade through to the rest of the AI sector.

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