November 9 — Wall Street believes that a sweeping Democratic victory in the US midterm elections has prompted traders to reassess this year's sharp selloff in US Treasuries. As tech stocks tumbled amid the political shift, bond bulls see opportunity. Market speculation suggests political changes could put the brakes on the AI investment boom—which has been driving economic growth, fueling inflation, and pushing up interest rates as companies issue debt to finance related investments. Additionally, a divided government will prevent Trump from passing major tax or spending bills, thereby easing some market concerns about the US annual budget deficit. Scott DiMaggio, head of fixed income at AllianceBernstein, said AI has been the largest contributor to nominal GDP growth, and any setback to that growth could benefit the bond market. The market is thus assured: if the economy falters, rates still have substantial room to fall.