Global markets rallied after Democrats’ success in the US midterm elections, with investors focusing on their opposition to the war in Iran and calls to slow the development of artificial intelligence. Shares and bonds rose across markets, while oil and natural gas prices fell sharply. The dollar also recorded its steepest decline in two months.

Brent crude fell as much as 10% to around $93 a barrel, its lowest level in two months, as traders weighed the possibility of a shift toward peace. Natural gas dropped more than 8% to €84.26 per megawatt-hour. Defence stocks came under pressure as expectations for military spending eased.

European markets posted their strongest gains since June. Madrid rose 3%, while Frankfurt gained 2.22%, Milan 2.18%, Paris 1.96% and London 1.79%. Banks benefited from lower bond yields, while luxury and renewable-energy shares also advanced. In Milan, Intesa Sanpaolo gained 5.45% and UniCredit rose 5.48%. Semiconductor stocks initially fell amid concerns about Democratic proposals to slow AI development and data-centre construction; STMicroelectronics lost 5.13% and ASML fell 5.03%.

US technology stocks recovered as investors considered whether slower AI investment could improve cash flow at major technology companies. Apple rose 6.7%, Microsoft gained 7% and Amazon advanced 8.3%. The technology-heavy large-cap index climbed 3.5% during the session, while Wall Street’s major indexes also rose. At the close, the Dow Jones was up 3.03% at 53,356.12, its largest daily gain since April 9, 2025. The S&P 500 added 1.58% to 7,688.62, and the Nasdaq gained 1.44% to 25,736.51.

Government bond yields declined across the curve. The US 10-year Treasury yield fell six basis points to 4.90%, while Germany’s 10-year yield dropped six basis points to 3.27%. The UK yield fell 13 basis points to 5.13%, and Italy’s declined 15 basis points to 4.31%.

The euro rose 0.4% to $1.1237, the pound gained 0.4% to $1.3472 and the yen advanced 0.2% to 158.30 per dollar. Bitcoin moved above $80,000, while Ether passed $2,427.

Sources: ANSA Economia.