Business · Markets · 1 hr ago
Dollar falls and gold rises after Democrats win control of Congress
Democrats won control of both chambers of the US Congress in the midterm elections, limiting President Donald Trump’s ability to advance his agenda during the last two years of his term.
Investors responded by selling the dollar, which fell to a one-month low, while the euro, pound, Swiss franc and yen gained against it.
Gold rose more than 2% to above $4,000 an ounce as investors sought assets viewed as safer during uncertainty.
The election result raised concern that a Democrat-led Congress could increase scrutiny and regulation of artificial intelligence companies, potentially slowing investment and growth.
Technology shares came under pressure as markets assessed that risk, though forecasts for US stock markets shifted during the day.
Lower US bond yields also reflected demand for Treasury bonds, which investors often treat as a safe haven.
Markets will watch how the new Congress affects policy, while Trump can still influence areas including trade, foreign policy and existing regulations.
Democrats won control of both chambers of Congress in the US midterm elections, putting pressure on the dollar.
The dollar fell to a one-month low, while the Swiss franc strengthened against it.
Investors moved towards assets seen as safer, including US Treasuries and gold.
Markets weighed the prospect of greater scrutiny of AI companies and reduced prospects for growth-focused policies.
Swiss stocks were expected to fall, with IG indicating a 1.16% decline.
- Who
- The Democratic Party won control of Congress, while the dollar and Swiss stocks came under pressure.
- What
- The dollar fell and the Swiss franc strengthened; Swiss stocks were indicated to open lower.
- When
- Wednesday, 4 November 2026, after the US midterm elections.
- Where
- In currency and stock markets, including Switzerland and the United States.
- Why
- Investors assessed the election result as raising the prospect of political gridlock and greater scrutiny of AI companies.
This story does not have two clearly opposing sides.
Stocks and futures fell as investors anticipated greater scrutiny of AI businesses and political gridlock.
The dollar fell and the Swiss franc strengthened after Democrats won control of Congress.
Indicators suggested Wall Street could open higher after Trump adopted a conciliatory tone and European markets rose.
- Dollar against Swiss franc
- 0.8170 francs, after falling at times to 0.8125
- EUR/USD
- 1.1230, up from 1.1190 the previous evening
- Swiss stock market indication
- IG forecast a 1.16% decline
- 10-year US Treasury yield
- Fell by almost 5 basis points to 4.915%
- Gold
- Rose 2.2%, passing $4,000 an ounce
6 sources
US dollar slides after Democrats’ midterm election win as growth fears rise
Dollar falls but global stocks stage recovery as traders react to Democrat election victory
Markets react to the US midterms: the dollar falls and gold rises
Devisen: Dollar gerät nach Niederlage der Republikaner unter Druck
Blaue Welle dürfte Schweizer Börse belasten
What people are saying
The scale of the losses will inevitably raise questions about Trump’s ability to push through his agenda over the next two years, and markets are already reacting.
I think the fear is that the pace of the AI infrastructure rollout could slow, potentially quite markedly in Texas, as they start to digest exactly what mandate they might have in terms of AI.
There’s still a number of areas where Donald Trump can influence the markets – trade and tariffs, foreign policy, and existing regulations.