US stocks surge 3% after Democrats win control of Congress
Dow Jones rose 3% as Democrats won US Congress control, lifting global markets including Australian shares.
Wall Street soared overnight after Democrats swept US midterm elections and secured control of both houses of parliament in the US. The blue-chip Dow Jones index jumped 3% to 53,342 points.
The broader S&P 500 rose 1.7% to 7,698 points, while the tech-heavy Nasdaq climbed 1.7% to 25,811 points. Oil prices fell 8% on the election result.
The Australian dollar strengthened 0.6% against the US dollar to reach 70.08 US cents. Australian markets followed suit, with the ASX 200 futures index set to open up 1.9%, a gain of 171 points to 9,027 points.
The gains reflect investor optimism about Democratic control of both houses and its implications for economic policy.
- +3% to 53,342 points
- Dow Jones gain
- +1.7% to 7,698 points
- S&P 500 gain
- -8%
- Oil price drop
- +0.6% to 70.08 US cents
- Australian dollar strength
Why it mattersAmerican election results move global markets, and strong US markets typically lift Australian shares and the value of the local currency.
AustraliaAustralian investors' portfolios and the ASX are expected to rise today following the US election rally, and Australians converting US dollars will see better exchange rates.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
