Democrats Sweep US Midterm Elections, Boosting Equities and Reducing Market Volatility

Following the US midterm elections on November 5, 2026, Democrats secured control of both chambers of Congress. This outcome led to a rally in US and European equities, with the Dow Jones gaining significantly, as markets reacted positively to the prospect of increased political stability. Implied volatility, as measured by the VIX, also collapsed once the election results were settled.