MUFG’s Lee Hardman notes that the US Dollar has reversed its initial post-election losses despite a sharp sell-off in AI-related equities.

The US Dollar (USD) trades sharply higher against its major currency peers as global sector rotation due to intensified sell-off in stocks related to Artificial Intelligence (AI) infrastructure has increased demand for safe-haven assets.

Dow Jones futures decline 0.85% to trade around 51,170 during the early European hours on Friday. Meanwhile, S&P 500 futures inch higher 0.06% to trade around 7,390 and Nasdaq 100 futures advance 0.90% to trade around 26,990.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, gains some follow-through positive traction during the Asian session on Friday, recovering further from its lowest level since late September set the previous day.

Wednesday was the Dow Jones Industrial Average's best session since April 2025 and Thursday is on track to be its worst since the same month, on the same election result. The index trades just above 51,500, below Tuesday's close and at its lowest since October 14.

A fresh wave of selling in AI-linked stocks is pulling Wall Street into one of its worst days in recent memory. A Democratic win in both the upper and lower houses has added fresh worries that AI data center projects could face renewed moratoriums and regulatory pressures.

TD Securities strategists argue that a Democratic blue sweep is modestly negative for the US Dollar (USD) via relative equities, rates and growth.

The US Dollar (USD) is reversing previous losses on Thursday as markets start to shift their gaze away from the results of the US midterm elections to the solid US macroeconomic figures released this week, which pave the path for another Federal Reserve (Fed) interest rate hike in December.

MUFG’s Lee Hardman notes that the US Dollar (USD) has extended its post-US mid-term election decline, with the US Dollar Index (DXY) down and US yields softer as Brent Oil drops back towards its 200-day moving average.

Dow Jones futures advance 0.5% to trade around 53,770 during the European hours on Thursday. Meanwhile, S&P 500 futures decline 0.05% to trade around 7,720 and Nasdaq 100 futures lose 0.69% to trade around 28,360.

Danske Research Team highlights that broad USD weakened as US bond yields declined following the Democratic sweep in the US midterms and a sharp fall in energy prices.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is extending its losses for the second consecutive day and reaching its monthly low of 101.20 during Asian hours on Thursday.

The US Dollar (USD) has traded broadly on the back foot on Wednesday, at some point retreating to the area of five-week lows as market participants were assessing the Democrats’ stunning victory at the US midterm elections.

TD Securities’ FX team, led by Jayati Bharadwaj and Howard Du, expects the US Dollar (USD) to see a modest relief selloff into year-end, with weaker-than-expected payrolls potentially accelerating the decline.

ING analysts James Knightley, Carsten Brzeski, Padhraic Garvey, Lynn Song and Chris Turner note that the Dollar has softened after the Democratic sweep in US midterms, though losses have been pared with Nasdaq futures stabilizing.

The US Dollar (USD) is showing the weakest performance among the major currencies on Thursday, hammered by the US President Donald Trump’s defeat in the midterm election.

Societe Generale’s Kit Juckes discusses the Dollar’s post-election weakness as US equities and technology stocks initially sold off before recovering. He notes US strategists see a strong economy and limited fiscal impact from a Democrat-controlled Congress, suggesting the Dollar dip may be temporary. However, heavy long-Dollar positioning and elevated geopolitical and economic uncertainty could allow further downside next year.

ING’s Chris Turner notes Democrats’ sweeping midterm victory has initially weighed on the Dollar and short-dated US rates, but much of the move is being reversed as investors refocus on a strong US economy and a tightening Federal Reserve.

Dow Jones futures advance 0.4% to trade around 52,100 during the European hours on Wednesday. Meanwhile, S&P 500 futures gain 0.15% to trade around 7,610 and Nasdaq 100 futures rise 0.14% to trade around 28,340.

The US Dollar (USD) underperforms its major currency peers on Wednesday due to the victory of United States (US) Democrats in both houses of Federal law.

Rabobank's Senior FX Strategist Jane Foley discusses how the Democrat sweep in Congress initially weighed on the Dollar and Nasdaq futures, but both quickly pared losses.

Commerzbank’s Volkmar Baur argues that a strong Democratic performance in US elections has triggered initial Dollar weakness versus the Euro and could dampen US Treasuries yields and equities, especially tech-heavy stocks.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, comes under intense selling pressure during the Asian session on Wednesday, dropping to its lowest level since late September as early US midterm election results heightened political uncertainty.

Gains in chip stocks have lifted the Nasdaq Composite and S&P 500 after three losing sessions, while the Dow Jones Industrial Average is moving the other way. It has given back all of Monday's gain and is trading near 51,700, just below Friday's close.

Commerzbank’s Norman Liebke argues that the US midterm elections are only one factor for the Dollar, with institutional and geopolitical risks also in focus.

The US Dollar shows a mild bullish tone against most of its main peers on Tuesday as fresh hostilities in Iran cast doubt over a peace process and boost Oil prices, while uncertainty about the US midterm elections keeps rallies limited so far.

ING strategists argue that the US Dollar’s reaction to the midterm elections should be short-lived. They see some short-term downside risk if Democrats win both chambers, mainly via regulation concerns and gridlock fears, but stress that the Federal Reserve narrative remains dominant.

Dow Jones futures decline 0.5% to trade around 51,880 during the European hours on Tuesday. Meanwhile, S&P 500 futures lose 0.15% to trade around 7,560 and Nasdaq 100 futures remain steady around 28,140.

Danske Research Team highlights that US midterm elections are held today, with tentative results due Wednesday and final outcomes potentially taking weeks. Prediction markets currently favor Democrats for the House and give them a strong chance in the Senate.

Investors sold tech after Oracle (ORCL) filed to raise $20 billion for artificial intelligence (AI) and bought the industrial and retail names that fill the Dow Jones Industrial Average.