[International Finance Briefing] U.S. Democrats win landslide in both houses... S&P 500 rises 1.58%, Treasury yields fall 7bp

Democrats won control of both chambers of the U.S. Congress in the midterm elections, securing at least 54 of 100 Senate seats and 240 of 435 House seats, the first time the opposition has taken both majorities since 2006. Markets rallied on the removal of election uncertainty and strong corporate earnings, with the S&P 500 rising 1.58% while Treasury yields fell 7 basis points. The result is expected to blunt the Trump administration's agenda on tax cuts and defense spending, raising the prospect of legislative gridlock. Investors are now watching debt-ceiling negotiations and the potential for tighter AI regulation as the next sources of volatility.