Democrats seize control of Congress as Republicans suffer historic midterm losses

Wall Street opened higher on Tuesday after Democrats secured control of the U.S. Congress, with the Dow Jones up 2% and the Nasdaq and S&P 500 each gaining more than 1%. The rally followed a sharp decline in futures the previous night amid concerns over potential AI regulation.

In the House, incumbent Speaker Mike Johnson announced he will not seek the minority leadership role, prompting Ohio Republican Jim Jordan, chair of the House Judiciary Committee, to position himself as a candidate for the post, according to reports citing sources familiar with the matter.

The election results marked a sweeping victory for Democrats, who captured 228 House seats—ten more than the 218 needed for a majority—and secured 54 Senate seats. Key pickups included traditionally Republican states such as Ohio, Iowa, Kansas, South Carolina and Texas, the latter seeing the election of the youngest U.S. senator, James Talarico, and the state’s first Latina governor, Gina Hinojosa.

Former baseball star and Republican candidate Mark Teixeira won Texas’s 21st congressional district, a seat that has been held by Republicans since 1979. He was endorsed by President Donald Trump and Texas Governor Greg Abbott.

In Colorado, hard-right Republican congresswoman Lauren Boebert trails her Democratic challenger by a narrow margin, while Mississippi Senator Cindy Hyde-Smith faces a competitive race after a controversial comment about protein choices.

British Prime Minister Andy Burnham said the U.S. election outcome presents an opportunity for global cooperation on issues such as the conflict in Iran and cost-of-living pressures, noting President Trump’s acceptance of the results.

Several other contests, including a California ballot measure proposing a one-time 5% tax on billionaires, remain unresolved.