Wall Street is taking a breather after a historic rally fueled by the Democrats' midterm victory. The Dow surged over 1,500 points on Wednesday, its best day since April 2025, as investors reacted to the political shift and a sharp drop in oil prices. Brent and WTI crude fell over 8% after the Trump administration acknowledged the impact of the Iran war on Republican losses.
Asian markets showed mixed results, with Japan's Nikkei and South Korea's Kospi declining amid a tech sector downturn. European markets, however, are mostly higher. President Donald Trump told CNBC he can collaborate with Democratic majorities, a sentiment echoed by analysts who believe this could reduce market volatility.
Elon Musk's companies, Tesla and SpaceX, are under pressure, with shares down over 3% after his $474 million election bet backfired. Qualcomm is also struggling, with shares down over 9% after missing smartphone chip sales estimates. Analysts have cut price targets for the stock to between $185 and $200.
Cryptocurrencies are seeing a cautious rebound, with Bitcoin hovering around $80,000. The political shift could reset Washington's approach to crypto regulation, potentially slowing industry-friendly legislation like the CLARITY Act. Experts predict no immediate changes, citing friendly regulators at the SEC and CFTC.