Last night, America's voters handed Trump the biggest midterm rebuke in a generation.
Then, a few hours later, Wall Street shrugged it off. Nasdaq futures, which had crashed as much as 2.4% as the blue wave turned into a tsunami, were up 0.9% by morning in New York, having ripped 929 points off the overnight lows. So the market's reaction to Democrats taking both chambers of Congress, the Texas governor's mansion and a Senate seat in Kansas for the first time since 1932 was... buy the dip.
Here is how it went down, from Michigan to the Rio Grande Valley, and why Goldman and Deutsche both think the morning-after rally has legs (for now).
Seven Flips, A Texas Earthquake And The First Muslim Senator
Democrats needed a net gain of four Senate seats. They got seven, winning races in Iowa, Kansas, Maine, North Carolina, Ohio, South Carolina and Texas, and beating several Trump-picked candidates along the way. The scorecard:
- Texas: James Talarico beat Ken Paxton to become the first Democrat elected to the Senate from Texas since 1988, despite Republicans vastly outspending him in the most expensive race of the cycle.
- Kansas: Megachurch pastor Adam Hamilton ousted Sen. Roger Marshall, giving the state its first Democratic senator since 1932.
- Maine: Troy Jackson unseated Susan Collins, ending her nearly
