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StocksMedium•4 November 2026•
4 min read

European Stoxx 600 Gains Nearly 1% as Markets Rebound After U.S. Elections

Key Facts

1The European Stoxx 600 rose nearly 1% by 09:27 GMT on November 4.
2European banks rose nearly 4%, leading sector performance.
3Nasdaq futures recovered to a 0.1% gain after falling more than 2% earlier in the session.
4Ørsted shares rose 6.7%, Nordex 5.3% and Vestas 4%.

The European Stoxx 600 rose nearly 1% by 09:27 GMT on Wednesday, November 4, as stocks turned higher after most results from the U.S. midterm elections emerged. Major European indexes advanced in early trading, with France’s CAC 40 up 0.4% to 8,055.02 points, the U.K.’s FTSE 100 up 0.1% to 10,646.43 points and Germany’s DAX up 0.5% to 25,995.13 points, according to the Associated Press. Spain’s IBEX led performance, rising 1.7% an hour after the open, while Italy’s FTSE MIB gained 1.3%, according to an InvestingLive report. The rebound followed a sharp early drop in U.S. futures: Nasdaq futures fell more than 2% earlier before turning higher by 0.1%. S&P 500 futures also rose 0.2% and Dow Jones futures 0.4%, according to the Associated Press.

Moves had been volatile since the early hours: Stoxx 600 futures fell about 0.2% at 06:39 GMT, having pared some losses after dropping 1.4% during Asian trading, according to data reported by Reuters via Investing.com. The European index then rose nearly 1% by 09:27, a clear reversal in the session’s direction. Italy’s bank index gained 2.2% and Spain’s bank index rose 1.6% at that time. Across sectors, European banks were the top performers, up nearly 4%. Reuters said investors turned to domestically focused banks, which had lagged the broader market for most of the year.

The shift coincided with the Associated Press reporting that Democrats had won majorities in both the House of Representatives and the Senate. The prospect of this political shift raised concerns at the start of trading about tighter regulation of artificial intelligence, but Reuters’ assessment of European banks focused on the effect of U.S. institutional constraints. Michael Field of Morningstar said the U.S. administration’s ability to impose requirements or sanctions on European banks operating in the United States was "limited." More broadly, the chief investment officer at Federated Hermes said divided government usually obstructs new legislation and that financial markets traditionally view an environment with fewer variables positively. A Capital Economics analyst said Democratic gains do little to change the near-term policy outlook, noting the absence of a majority capable of overcoming a Senate filibuster and the president’s veto power.

Clean-energy stocks were among Europe’s biggest gainers after being among the stocks most affected by President Donald Trump’s policies, according to Reuters. Ørsted jumped 6.7%, Nordex rose 5.3% and Vestas gained 4%. The moves reflected the rebound’s extension into sectors sensitive to U.S. policy expectations, alongside gains in banks. Technology, by contrast, remained in the background after waves of selling triggered by investor concerns over elevated valuations of AI-linked stocks, according to the Associated Press. European technology stocks fell 2.75% on October 30, their worst daily performance since July 7, even as the Stoxx 600 recorded its best monthly performance since June that month.

The stock volatility came as the yield on 10-year U.S. Treasury notes rose to 4.96% from 4.91% late Monday, according to the Associated Press. The agency said U.S. employers reported more job openings than expected at the end of September, alongside the rise in the yield. These readings show the data context markets entered Wednesday’s session with, while share movements also remained tied to investors absorbing the election results and concerns over technology valuations.

After the election results, investors’ focus is shifting from uncertainty about the vote to what the outcome could mean for policy, according to Kathleen Brooks, research director at XTB. She said investors "will move from trading on the uncertainty of the election results to trading on what they mean for policy." In Europe, the Bank of England’s Monetary Policy Committee decision, summary and minutes, along with its November Monetary Policy Report, were scheduled for Thursday, November 5, with the announced interest rate at 3.75%, according to the bank’s calendar page. The U.S. October jobs report was also scheduled for Friday, November 6, at 08:30 a.m. Eastern Time, according to the U.S. Bureau of Labor Statistics.