The dollar strengthened as the artificial intelligence trade rebounded, driving stocks higher. US job openings climbed to a four-month high, while layoffs dropped to the lowest level in over a year. The Bloomberg Dollar Spot Index gained 0.2%. Brent crude fell amid diplomatic efforts in the Middle East. With voting underway Tuesday, investors are closely watching the US midterm elections, and Democrats are widely expected to win control of the House. Polls for months have shown that Democrats' lead among voters is sufficient to offset the disadvantages posed by Republican-led redistricting. Scotiabank strategists Shaun Osborne and Eric Theoret wrote in a report that, given the starkly different regulatory proposals facing voters, the midterm election results are crucial to the tech sector and the AI chip industry; a tighter tech regulatory environment could weaken the US tech industry, economic growth and inflation prospects, ultimately weighing on the dollar.
