Stocks are off to a mixed start on Wall Street and Treasury yields are rising as investors keep a close eye on Senate races in Georgia, which could flip control of the chamber to Democrats. Technology stocks were broadly lower, while small-company stocks were rising broadly. The S&P 500 was down just 0.1%, but the tech-heavy Nasdaq was off 0.9% in the early going Wednesday. The Russel 2000 index of smaller companies roared ahead 1.9%. That’s a sign of increasing confidence in the economy. The yield on the 10-year Treasury note rose above 1% for the first time since March.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
World shares were mixed and U.S. futures declined Wednesday as investors awaited full results of a Senate runoff election that will determine whether Democrats take control of both houses of the U.S. Congress.
Benchmarks edged higher in Europe. Shares traded lower for most of the day in Asia, although markets in Hong Kong and Shanghai ended higher.
Traders are focusing on the outcome of the runoff elections in Georgia Tuesday, which will determine which party controls the Senate. Some analysts say the results could mark clear winners and losers in the stock market.
The expectation is that a Democratic sweep might lead to higher tax rates, tougher regulation on businesses and other potentially profit-crimping changes from Washington. That would put broad pressure on the stock market, with Big Tech stocks in particular perhaps attracting more regulatory scrutiny.
U.S. futures were lower on Wednesday, with the contract for the S&P 500 down 0.7% and the future for the Dow industrials 0.1% lower after Democrat Raphael Warnock won one of the two Senate runoffs, becoming the first Black senator in his state’s history and putting the Senate majority within the party’s reach.
The outcome of the race between Republican David Perdue and Democrat Jon Ossoff was too early and close to call as votes were still being counted.
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