US stock markets and government bonds rally while dollar falls after Democrats secure Congress – business live

AI desk brief

Spot gold rose 2.9% to $4,041/oz as Democrats captured both chambers of Congress in the 2026 midterms; the dollar fell 0.5% and the US 10-year Treasury yield declined 5.1 basis points to 4.91%. Deutsche Bank attributed Treasury gains to reduced scope for fiscal stimulus and reported slightly fewer Fed hikes priced through June 2027. Continued dollar weakness could support bullion, but lower nominal yields alone do not establish lower real yields. Morningstar cautioned that Senate procedures and presidential veto power favour gridlock over sweeping policy changes, while Federated Hermes still forecast further Fed tightening.