Stocks and bonds up on Democrats’ midterms victory - Semafor

Stock and bond markets gained following Democrats’ midterm victories on buoyant hopes for the US economy and fiscal picture, but some tech stocks declined on concerns over an expected slowdown in the AI infrastructure buildout. Though the results mean control of the government will be divided, markets “like gridlock — they don’t like a party with too much power,” a Morgan Stanley executive told CNBC.

Bets that US borrowing will slow helped bolster US Treasurys, while another investor told Bloomberg that “the fundamental backdrop has not suddenly changed, with US growth remaining solid.” Some companies slipped, though: Elon Musk’s SpaceX and Tesla both fell; the GOP supporter spent heavily, and unsuccessfully, to defeat Democrats in Texas, where both firms are based.