US stocks trade lower as likely Democratic control of Senate roils tech

Brendan McDermid/Reuters

  • US stocks traded mostly lower on Wednesday after results from the Georgia Senate runoff elections pointed to a likely Democratic “blue sweep.”
  • Tech stocks led the market lower as Democratic control of Congress could put big tech anti-trust laws into focus, Wedbush analyst Daniel Ives said in a note on Wednesday.
  • Bitcoin surged to an all-time-high above $35,000 after it became apparent Democrats would win both Senate elections.
  • Watch major indexes update live here.

US stocks traded mostly lower on Wednesday following the results of the Georgia Senate runoff elections, which pointed to likely Democratic control of Congress.

Democratic candidate Raphael Warnock secured his victory on Tuesday, while Democratic candidate Jon Ossoff led his opponent David Perdue by a slim margin as of Wednesday morning, with many of the outstanding votes left to be counted from Democratic strongholds.

Technology stocks led the market lower following the election results, with Wedbush analyst Dan Ives chalking up the decline to the increased likelihood of anti-trust legislation under a Democratic controlled Congress.

Here’s where US indexes stood after the 9:30 a.m. ET open on Wednesday:

  • S&P 500: 3,709.38, down 0.47%
  • Dow Jones industrial average: 30,388.61, down 0.01% (2.99 points)
  • Nasdaq composite: 12,694.24, down 1.08%

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Bitcoin surged to an all-time-high above $35,000 following the Georgia election as investors sought an inflation hedge against the likelihood of increased government spending under President-elect Joe Biden’s administration.

US private-sector employment shrank in December for the first time in 8 months, ADP said, with a private payroll loss of 123,000 in the month.

The yield on the 10-year US treasury topped 1% for the first time since March following the Georgia election results.

Oil prices rose. West Texas Intermediate crude jumped as much as 0.08%, to $49.97 per barrel. Brent crude, oil’s international benchmark, gained 0.47%, to $53.85 per barrel, at intraday highs.

Gold fell as much as 0.75%, to $1,939.70 per ounce.

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