Markets Rise as Midterm Results Point to Divided GovernmentMidterm Results Put a Check on Trump’s Spending AgendaDivided Government Lifts Bonds as Spending Gridlock Looms
U.S. stocks and bonds gained on November 4 after Democrats’ midterm victories raised expectations of divided government. Investors weighed hopes for slower federal borrowing against possible policy gridlock and volatility in technology shares.Democrats’ midterm victories on November 4 strengthened the prospect of divided government, as U.S. stocks and bonds rose. Investors anticipated roadblocks to new spending, while consumers remain focused on affordability and inflation.After Democrats’ midterm victories on November 4, U.S. bonds gained as investors anticipated limits on federal spending and borrowing. Stocks also rose overall, though some technology shares fell amid concerns about slower AI investment and regulatory risks.