Stocks were mixed Wednesday and technology shares slumped as investors bet Democrats would win the U.S. Senate.
Democrat Rev. Raphael Warnock beat Sen. Kelly Loeffler in Georgia, winning one of two Senate runoffs in the state.Â Warnock’sÂ victory puts the Senate majority within the Democratic partyâ€™s reach.
The race between Republican Sen. David Perdue and Democrat Jon Ossoff remains too early to call as votes were still being counted. Ossoff has a slim lead,Â according to multiple reports.Â
The Dow Jones Industrial Average rose 60 points, or 0.2%, to 30,452, the S&P 500 declined 0.11% and the Nasdaq slumped 0.9% on concerns big technology companies could face tougher antitrust scrutiny under a Democrat-controlled Congress.
The yield on the benchmark 10-year U.S. Treasury note hit 1% for the first time since March.
The elections in Georgia will determine whether the Democrats take control of Congress and enable them to push the legislative agenda of President-elect Joe Biden. If the Democrats win both runoffs they would be on even-footing with Republicans in the Senate, allowing Vice President-elect Kamala Harris to cast the deciding vote in any deadlock.
Analysts believe a swing to the Democrats could lead to greater fiscal stimulus and higher taxes. Just one Republican win would give the GOP enough votes to block Biden from pursuing his more ambitious policies on trade, energy and security.
“I don’t expect major stock market implications surrounding a 50/50 tie in the Senate,” saidÂ David Bahnsen, chief investment officer of the Bahnsen GroupÂ in Newport Beach, Calif. “While the vice president’s vote means that a straight party line vote would belong to the Democrats, some of the market unfriendly policies that investors have been worried about in the event of a Blue Wave are still not going to come so easily.”Â
President Donald Trump, meanwhile, signed an executive order Tuesday banning transactions with eight Chinese apps, including Ant Group’s Alipay. China accused the U.S. on Wednesday of abusing its powers, saying its actions only harmed American consumers.
Private payrolls at U.S. companies unexpectedly fell by 123,000 during December, the first decline since April, as the coronavirus pandemic crimped hiring, particularly in theÂ leisure and hospitality and retail industries.