US Midterm Election Results Drive Sector Rotation: Renewables & Healthcare Up, Defense & AI Data Centers Down

Investing.com - European shares jumped to its highest in over two months on Wednesday after Democrats won control of both chambers of the US Congress, and boosted by heavyweight Novo Nordisk.

The pan-European STOXX 600 index advanced 1.2% in its best showing since July, with healthcare giant Novo Nordisk jumping nearly 6% after the Wegovy maker reported third-quarter adjusted operating profit above expectations and raised its full-year sales and profit forecasts.

Germany’s DAX and France’s CAC

Investing.com-- Asian stocks pared most of their early losses on Wednesday as investors gained clarity on the outcome of U.S. midterm elections, with Democrats securing control of Congress from President Donald Trump’s Republicans.

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South Korea’s KOSPI closed 0.6% higher after falling as much as 4% earlier in the day, with Samsung Electronics (KS:005930) and SK Hynix (KS:000660) reversing most of sharp losses.

Japan’s Nikkei

Stock futures turned positive early on Wednesday, reversing earlier losses, as traders weighed the impact of the Democrats taking control of Congress and several key gubernatorial wins in the 2026 U.S. midterm elections.

Futures tied to the S&P 500 traded 0.2% higher, while Nasdaq-100 futures were up 0.2%. Futures tied to the Dow Jones Industrial Average added 0.5%. Futures were trading lower earlier in the session.

The Democratic Party swept to victory, taking control of Congress overnight. T

Treasury yields moved lower on Wednesday as investors sought shelter from a sell-off in equity futures sparked by potential big victories from Democrats in the U.S. midterm elections.

The benchmark 10-year Treasury note yield was last seen 2 basis points lower at 4.9291%. The 30-year bond yield slid 1 basis point to 5.3093%, and the shorter-term 2-year note yield pulled back 1 basis point to 4.5996%.

One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one an

Investing.com -- Chemring stock fell 2.5% during today’s session, trading as low as 537p, after Democrats secured majorities in both the U.S. Senate and House of Representatives in the midterm elections, raising the prospect of heightened scrutiny over American defence budgets.

For a company that has built a significant portion of its revenue pipeline around U.S. government contracts — including a major countermeasures deal with the U.S. Department of Defense — the political shift represented a