US Markets Slide As Democrats’ Midterm Election Gains Weaken Dollar And Boost Gold Prices

Financial markets have come under pressure following the United States midterm elections, as major gains by the Democratic Party dealt a political blow to President Donald Trump and his Republican Party.

The election results saw Democrats make significant advances in Congress, winning in several states traditionally considered Republican strongholds. The outcome has raised fresh political uncertainty as Trump moves into the final years of his presidency.

A market survey showed that the US dollar fell by 0.6 per cent against a basket of major international currencies at one point before recovering slightly to trade 0.35 per cent lower.

The dollar recorded some of its sharpest declines against the Japanese yen and the Swiss franc, reflecting investor reactions to the election outcome.

Meanwhile, gold prices moved in the opposite direction, gaining 2.4 per cent as the weaker dollar supported demand for the precious metal. Spot gold climbed to $4,022 per ounce.

US stock futures also experienced losses. Futures tracking the technology-heavy Nasdaq Composite dropped by more than 2 per cent before recovering to a 0.25 per cent decline, while S&P 500 futures traded 0.2 per cent lower.

The sell-off extended to artificial intelligence-related stocks across regional markets following Tuesday’s trading session. At the same time, US Treasury bonds rallied as investors responded to the political developments.

Reacting to the results, Trump congratulated the Democrats on their victory but insisted that the Republican losses did not mean Americans had withdrawn their support for his leadership. He partly blamed the setback on rising gasoline prices, which he linked to the war in Iran that escalated in February 2026.