Democratic Sweep of Congress Seen Pressuring Dollar, AI Stocks

A Democratic sweep of the House and Senate could temporarily weigh on the U.S. dollar and raise regulatory risks for the technology sector, particularly AI infrastructure spending, analysts say. The DXY dollar index fell 0.5% to 101.309 after hitting a one-month low. Ten-year Treasury yields dropped 2.9 basis points to 4.921%. ING expects election-driven FX moves to be short-lived, with Fed policy remaining the dominant driver. Capital Economics warns of increased geopolitical uncertainty as Trump may shift focus abroad. Danske Bank says fiscal policy is now locked in for 2027-28, reducing the chance of deficit-widening measures. Lombard Odier sees reinforced Fed independence as a positive.