The blue-wave shock that hit Wall Street

The Straits Times · Vikram Khanna · 2026-11-06 08:00 UTC

Wall Street sent a blunt message: US voters have turned on the AI build-out, and export hubs such as Singapore will feel it Read more at straitstimes.com.

US voters have turned on the AI build-out, and export hubs such as Singapore will feel it.

Democratic victories in US elections, presidential or midterm, are rarely greeted warmly by financial markets. The party is seen as favouring higher taxes, tighter regulation and bigger government, and as softer on inflation. This time investors found something more alarming: a political backlash against the artificial intelligence (AI) build-out that has powered stock markets for three years.

The first reaction to the sweeping Democratic gains in the Nov 3 midterms was euphoric. On Nov 4, the S&P 500 rose 1.6%, its best session since August, and the Dow jumped 3%, its biggest post-midterm gain since 1982. Treasury yields fell across the curve, gold and Bitcoin rallied, and Brent crude fell almost 9%, to below US$95 a barrel.

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