Finance

Markets respond to midterm election results – LIVE


<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Investors are bracing for a potential congressional shake-up in the wake of the US midterm elections. The results will lay the groundwork for the next two years and the back half of President Donald Trump’s term, holding major implications for policy-sensitive sectors and industries. ” data-reactid=”15″>Investors are bracing for a potential congressional shake-up in the wake of the US midterm elections. The results will lay the groundwork for the next two years and the back half of President Donald Trump’s term, holding major implications for policy-sensitive sectors and industries. 

The earliest polls closed at 6 p.m. ET.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Each of the three major indices closed higher Tuesday at the end of regular trading. The S&P 500 (^GSPC) rose 0.63%, or 17.14 points. The Dow (^DJI) advanced 0.68%, or 173.31 points to its highest closing price in three weeks. The Nasdaq (^IXIC) rose 0.64%, or 47.11 points.” data-reactid=”17″>Each of the three major indices closed higher Tuesday at the end of regular trading. The S&P 500 (^GSPC) rose 0.63%, or 17.14 points. The Dow (^DJI) advanced 0.68%, or 173.31 points to its highest closing price in three weeks. The Nasdaq (^IXIC) rose 0.64%, or 47.11 points.

Here are the market reactions from the evening.

9:44 p.m. ET: Democrats gain House seat after Florida Republican Carlos Curbelo concedes

Incumbent Republican Carlos Curbelo conceded to Democratic candidate Debbie Mucarsel-Powell for Florida’s 16th congressional district in a tossup race, giving Democrats their third pick-up.

9:42 p.m. ET: Fox News says Democrats will gain House control, knocking stock futures

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Stock futures fell from session highs and bond yields ticked down following a report from Fox News’s Decision Desk that Democrats would take control of the House. As of 9:42 p.m. ET, it is unclear what data the outlet is using to come to the conclusion, as Democrats have picked up just two of the 23 seats they need so far.” data-reactid=”22″>Stock futures fell from session highs and bond yields ticked down following a report from Fox News’s Decision Desk that Democrats would take control of the House. As of 9:42 p.m. ET, it is unclear what data the outlet is using to come to the conclusion, as Democrats have picked up just two of the 23 seats they need so far.

9:25 p.m. ET: S&P 500 futures trade at session highs

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="S&P 500 futures (ES=F) hit a session high of 2,772.75 as races point toward Republicans retaining control of the Senate, as had been anticipated. Equity markets have been particularly sensitive to the results during the session, with signals of maintaining the current balance of power sending stock futures higher.” data-reactid=”24″>S&P 500 futures (ES=F) hit a session high of 2,772.75 as races point toward Republicans retaining control of the Senate, as had been anticipated. Equity markets have been particularly sensitive to the results during the session, with signals of maintaining the current balance of power sending stock futures higher.

Dow futures also spiked “as the prospect of a ‘blue wave” simmers,’ Ryan Nauman, market strategist at Information Investment Solutions, told Yahoo Finance.

As results come in, JJ Kinahan, chief market strategist at TD Ameritrade, said one aspect of policy that likely won’t be budging is trade.

“I believe that early results show that [‘the Trump trade’] will remain in place,” he told Yahoo Finance. “However, I think until we see more results, caution remains the word, and in either scenario I don’t believe volatility abates too significantly until tariffs are resolved.”

8:47 p.m. ET: Mike Braun wins Indiana Senate race in Republican pick-up

Republican and businessman Mike Braun won Indiana’s Senate seat over Democratic incumbent Joe Donnelly, AP reported. This means Democrats would need to maintain other Senate tossup seats including Missouri, Tennessee and North Dakota, which is Lean Republican, according to Cook Political Report. Braun has been a frequent critic of foreign outsourcing and a proponent of Trump’s policies of putting America first with trade and business.

8:46 p.m. ET: Republican Andy Barr takes Kentucky’s 6th district

Republican incumbent Andy Barr won Kentucky’s 6th district against Democratic challenger Amy McGrath in a toss-up race widely viewed as a bellwether for control of the House. Trump had won the district by 16 points in 2016.

8:34 p.m. EST: Stock futures erase losses

S&P 500 E-minis turned around and climbed 0.34% to 2,769.25 after falling earlier on as results began trickling in. Equity markets are continuing the status quo – which in this case was a rally at market close – in the absence of certainty in the early hours of congressional race results.

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S&P 500 futures

8:21 p.m. ET: Donna Shalala wins Florida’s 27th district, earning Democrats their second pick-up

Donna Shalala won the race to replace retiring Republican Ileana Ros-Lehtinen for Florida’s 27th congressional district, beating Republican Maria Elvira Salazar, according to AP. Though Shalala was expected to come out ahead since the district voted largely for Hillary Clinton, the win represented another much-needed pick-up for Democrats clawing for the majority.

The upset is yet another hint of the materialization of a “Blue Wave” scenario, with Democrats flipping the House. This was the consensus expectation among investors going into the midterm elections.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="But pushed further, a “Blue Tsunami” situation with Democrats taking both chambers of Congress “would likely be a net negative for equity market sentiment,” Barclays analyst Aroop Chatterjee wrote in a note. “Without fiscal stimulus/deregulation as a catalyst, the possibility of calls for impeachment and increased investigations would likely intensify the overhang on sentiment.” ” data-reactid=”61″>But pushed further, a “Blue Tsunami” situation with Democrats taking both chambers of Congress “would likely be a net negative for equity market sentiment,” Barclays analyst Aroop Chatterjee wrote in a note. “Without fiscal stimulus/deregulation as a catalyst, the possibility of calls for impeachment and increased investigations would likely intensify the overhang on sentiment.” 

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="7:44 p.m. ET: Stock futures plunge after Democrat Jennifer Wexton defeats incumbent Republican Barbara Comstock” data-reactid=”62″>7:44 p.m. ET: Stock futures plunge after Democrat Jennifer Wexton defeats incumbent Republican Barbara Comstock

Stock futures turned lower after the first upset of the evening in the House race, with Democrat Jennifer Wexton defeating incumbent Republican Barbara Comstock for Virginia’s 10th congressional district, according to a call from NBC and CNN.

S&P 500 futures went from around 2,757 down to 2,745 in a matter of minutes after the results were reported.

Investors began flocking to safe havens following the results. The yield on the 10-year Treasury note fell to below 3.2%, while gold and the Japanese yen also advanced.

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="S&P 500 futures” data-reactid=”82″>S&P 500 futures

VA-10 had been viewed as a key barometer for the Democrats in the House race ahead of results, according to some analysts.

“If Jennifer Wexton can’t carry a district where her average polling lead is 7.7%, it doesn’t bode well for the Democrats to win the ~18 similar likely or solid Democratic seats they need to capture a majority,” Michael Zezas of Morgan Stanley wrote in a note Monday.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck” data-reactid=”86″>Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Follow Yahoo Finance on TwitterFacebookInstagramFlipboardLinkedIn, and reddit
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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Read more stories about the midterm elections: 
US midterm elections will be, by far, the most expensive ever
Stocks rally as America votes
What gridlock in Washington really means for stocks
‘Three big players will remain’ after midterms: Trump, Mueller, Powell” data-reactid=”88″>Read more stories about the midterm elections: 
US midterm elections will be, by far, the most expensive ever
Stocks rally as America votes
What gridlock in Washington really means for stocks
‘Three big players will remain’ after midterms: Trump, Mueller, Powell

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