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Macro EconomyMediumUpdated×4•Originally published 4 November 2026•Updated 4 November 2026•
5 min read

Democratic Control of Both Houses of Congress Lifts S&P Futures 0.2%

Key Facts

1Democrats won both houses of Congress; S&P 500 futures rose 0.2% and Dow Jones futures gained 0.4% on Wednesday.
2Nasdaq 100 futures fell as much as 2.4% and S&P 500 futures dropped 1.4% before recovering their losses.
3Brent rose 0.4% to $103.88 a barrel, and U.S. crude gained 0.3% to $96.34.
4The U.S. 10-year Treasury yield fell 3 basis points to 4.92% on Wednesday.
5The U.S. jobs report is due on November 6, 2026, and the consumer price index on November 10, both at 8:30 a.m. Eastern Time.

Democrats won majorities in both the House and Senate in the U.S. midterm elections, and the S&P 500 futures contract rose 0.2% and the Dow Jones Industrial Average futures contract gained 0.4% on Wednesday, November 4, according to the Associated Press. The gains followed swings after the results became clear, while global markets were mixed across regions. Stephen Brown of Capital Economics said the scale of the Democratic gains “does not change near-term policy expectations much.” He attributed that to the absence of a Senate filibuster-proof majority and the president’s veto power. Investors are focused on what Democratic control of both chambers could mean for legislation, alongside upcoming U.S. economic data.

U.S. futures came under pressure after the results emerged, before recovering their losses. Nasdaq 100 futures fell as much as 2.4%, and S&P 500 futures dropped 1.4%, Reuters reported via Fidelity. In European trading on Wednesday morning, stocks turned higher after U.S. futures fell as much as 2% overnight. The MSCI World Index rose 0.13% and the European Stoxx 600 gained 0.5%, according to Reuters via Investing.com. Deborah Cunningham of Federated Hermes said the Democratic win leaves the federal government divided on most issues, and that markets have traditionally viewed legislative gridlock favorably because it reduces variables.

In Europe, France’s CAC 40 rose 0.4% to 8,055.02 points, Britain’s FTSE 100 gained 0.1% to 10,646.43 points, and Germany’s DAX advanced 0.5% to 25,995.13 points in early trading, according to the Associated Press. In Asia, Japan’s Nikkei fell 1.4% to 62,188.63 points, while South Korea’s Kospi rose 0.6% to 5,683.80 points. Hong Kong’s Hang Seng gained 1.5% to 23,888.46 points, and the Shanghai Composite rose 2.2% to 3,686.17 points. The agency said Shanghai’s gains were a rebound from the annual low it hit on Tuesday. The divergence reflects the breadth of market reactions to the election result, with major indexes rising in Europe, Hong Kong and Shanghai while the Nikkei fell.

U.S. 10-year Treasury yields fell 3 basis points to 4.92% on Wednesday, after declining as much as 6 basis points to 4.89% overnight, according to Reuters via Investing.com. The report linked the move to expectations that political gridlock would slow government spending. In Wednesday trading reported by the Associated Press, the dollar fell to 158.17 yen from 158.69 yen, while the euro rose to $1.1242 from $1.1194. These were levels at the time the agency prepared its report, not closing prices for the session. In energy markets, Brent crude rose 0.4% to $103.88 a barrel, and U.S. crude gained 0.3% to $96.34.

Tuesday’s session provided a mixed backdrop for U.S. stocks before the election result emerged. The S&P 500 rose 0.4% despite most of its stocks falling, the Dow Jones declined 197 points, or 0.4%, while the Nasdaq Composite gained 0.8%, according to the Associated Press. Nvidia and Broadcom were among the biggest contributors to the S&P 500’s rise, while Microsoft, Amazon and Meta shares each gained more than 2%. The agency noted that investors were concerned that stocks tied to artificial intelligence had risen too much, fears associated with waves of selling in technology shares. An analyst at Amundi said restrictions on the AI sector could make the outlook for the U.S. economy, inflation and monetary policy highly uncertain.

The U.S. 10-year Treasury yield rose to 4.96% on Tuesday from 4.91% late Monday, after a report showed that job openings at the end of September exceeded economists’ expectations, according to the Associated Press. That differs from the yield’s decline in Wednesday trading, as the figures reflect movements in two separate sessions. On the election backdrop, an exit poll showed that half of voters saw the election as an opportunity to express disapproval of the president, and 70% said they wanted Congress to impose more checks and balances on him, according to Reuters via Investing.com. President Donald Trump also acknowledged that the war in Iran contributed to Republican losses in Tuesday’s election, according to Reuters. These political developments remain part of the context in which markets assess the implications of the shift in control of both chambers.

Economic focus is turning to the U.S. October jobs report, scheduled for release on November 6, 2026, at 8:30 a.m. Eastern Time, followed by the consumer price index for the same month on November 10 at the same time, according to the U.S. Bureau of Labor Statistics’ schedule. The dates come after an election result brought divided control of Washington back to the forefront of investors’ attention. The Associated Press says markets usually prefer control to be divided between Republicans and Democrats because it limits the risk of sweeping changes that could reshape the economy. At the same time, investors are monitoring the effect any potential restrictions on AI could have on the economy, inflation and monetary policy, according to an Amundi analyst’s comment reported by Reuters. The labor and inflation releases will provide two near-term checkpoints for assessing economic conditions as political developments remain in focus.