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Macro EconomyMedium•4 November 2026•
2 min read

Global stocks gain 0.13% after Democrats win both chambers of U.S. Congress

Key Facts

1The MSCI All Country World Index rose 0.13% on the morning of Nov. 4, 2026.
2The European Stoxx 600 rose 0.5% on the morning of Nov. 4, 2026.
3The yield on 10-year U.S. Treasury notes fell 3 basis points to 4.92% on Nov. 4, 2026.
4The dollar fell 0.6% against the Swiss franc to 0.8163 francs on Nov. 4, 2026.
5The U.S. October employment report is due on Nov. 6, 2026, at 8:30 a.m. Eastern time.

The MSCI All Country World Index rose 0.13% on the morning of Nov. 4, alongside the announcement of U.S. midterm election results that gave Democrats majorities in both the Senate and the House of Representatives, according to the Associated Press. The Stoxx 600 rose 0.5% after turning higher, Reuters reported in an account carried by Investing.com. In the United States, stock futures edged up while oil prices fell, according to the Associated Press. Currency trading showed the dollar down 0.6% against the Swiss franc at 0.8163 francs and 0.4% against the yen at 158.12 yen, according to Reuters. A rise in emerging-market stocks and currencies that day could not be verified from a reliable open source.

The yield on 10-year U.S. Treasury notes fell 3 basis points during the day to 4.92%, after declining as much as 6 basis points to 4.89% overnight, according to Reuters. The agency linked the Treasury rally to investors’ expectations that political gridlock in Washington would lead to lower government spending. It added that the prospect of slower regulation of artificial intelligence could reduce the need for interest-rate hikes. The Associated Press described divided political control between Republicans and Democrats as a situation markets typically favor, as it is seen as limiting the likelihood of broad changes in economic policy. But the announced election result gave Democrats majorities in both chambers, while a Capital Economics analyst noted that the party does not have a Senate majority capable of breaking a filibuster and that President Donald Trump can veto legislation.

Emerging-market moves remain sensitive to changes in investor risk appetite. The International Monetary Fund estimated that a one-standard-deviation increase in the VIX market volatility index is associated with portfolio debt outflows from emerging markets equivalent to about 1% of quarterly gross domestic product, on average. The fund published this estimate on April 7, 2026, in an analysis of the challenges associated with rising nonbank capital flows to those markets. On the U.S. calendar, the October employment situation report is due on Nov. 6 at 8:30 a.m. Eastern time, according to the Bureau of Labor Statistics. The Federal Reserve will also release minutes from its Oct. 27 and 28 meeting on Nov. 18 at 2:00 p.m. The November Beige Book is due on Nov. 25 at 2:00 p.m., according to the central bank’s calendar.