Global Stock Markets Rebound After Sharp Selloff

Global equities rebounded sharply after an earlier selloff tied to the Democrats’ sweep of both chambers of the U.S. Congress, with the S&P 500 recovering 2.18%, the Nasdaq gaining 3.13%, the Dow Jones rising 2.16% and the Russell 2000 climbing 2.31%. Japan’s Nikkei 225 rebounded 5.09% and South Korea’s KOSPI gained 4.71% from their session lows. The reversal matters because it signals investors quickly looked past the initial political shock and bought the dip across major indexes. What to watch next is whether the rebound holds as markets digest the implications of unified Democratic control in Washington.