Andrea Innocenti The outcome of the US midterm elections has had a ripple effect on global financial markets. Following President Donald Trump 's declaration of acceptance of the vote, major European stock markets posted gains, while Wall Street indices showed signs of recovery.
Positive movement on the main European stock markets
Milan led the way, rising 1,8% , placing it in second place after Madrid, which closed up 2,2%. It was followed by Frankfurt (+0,9%), Paris (+0,9%), and London (+0,6%). These gains reflect European investors' confidence in American political stability, especially after the disputes over the fairness of the vote were quelled.
Details on the Italian and Spanish markets
The FTSE MIB benefited from excess liquidity and increased risk appetite, while the IBEX 35 benefited from currency hedging operations following the confirmation of the election result. In both cases, traders interpreted the lack of protests as a sign of continuity in US economic policies.
Wall Street follows the European trend
In the United States, the Dow Jones rose 1% and the Nasdaq rose 0,5% . The momentum was fueled by the consensus that President Trump does not intend to start new conflicts, particularly against Iran, and that he is willing to cooperate with the Democratic Party. This openness reduced geopolitical uncertainty, allowing traders to focus on macroeconomic data.
Impacts on the technology sector
The Nasdaq, although rising more modestly than the Dow, saw a slight recovery thanks to large-cap stocks, including those related to AI and data centers. The lack of imminent AI regulations from the administration has strengthened investor confidence in the sector.
The American electoral landscape
On November 3, voters decided the future of the 435 seats in the House and 35 in the Senate, forming the 120th Congress. Before that, Republicans held 219 seats in the House (against 214 Democrats and two vacancies) and 53 in the Senate (against 45 Democrats and two independents). A majority in the House requires 218 seats, while 51 in the Senate is sufficient.
Campaign and key themes
The campaign's central issues were the cost of living—inflation, gasoline prices, and housing—and foreign policy, particularly the conflict with Iran. Criticism of Trump highlighted the failure to end the "perennial wars" and rising prices, factors that weighed on voter perceptions. At the same time, the issue of illegal immigration maintained a certain consensus among Republicans.
The final outcome, still unclear at the time of writing, will determine whether the president finds a more hostile or cooperative Congress. A Democratic-controlled Congress could limit Trump's freedom of action, while a Republican majority would facilitate the implementation of his campaign promises.