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Hello, this is Leonie Kidd from today’s Morning Squawk.
After a monster rally that was the Dow’s best day in more than a year and a half, a sober view prevails.
Investors are currently assessing the impact of a new Democratic-led Congress and how it might change market conditions.
What’s happening now: Stop and think.
Futures are mixed across Wall Street after the Dow soared more than 1,500 points to close at its highest close since April 2025 on the back of Democrats’ decisive midterm victory.
The plunge in oil prices has pushed up stock prices significantly. Brent and WTI settled lower after falling more than 8% in Wednesday trading. This came after the Trump administration acknowledged the role the Iran war played in the Republican Party’s poor results.
The U.S. Capitol Building photographed on November 2, 2026 in Washington, DC.
Countess Djemal | AFP | Getty Images
It is a mixed takeover from Asia, where Japan’s Nikkei Shimbun and korean Kospi Despite the market as a whole performing well, the stock fell sharply as the loss of high-tech stocks worsened. European stock markets are generally rising.
President Donald Trump told CNBC’s Eamon Javers in a brief phone call late Wednesday that he could work with the Democratic majority in the next Congress on “more than people realize.”
Analysis: Analysts speak to CNBC about the factors behind the monster rally, Generali’s Thomas Hempel said President Trump’s openness to cooperation shows “further reverse polarization is avoidable.” Relief Rally: Deutsche Bank’s George Saravelos said President Trump’s acceptance of the results would “act as a check on extreme policy outcomes and reduce risk premiums.” What’s next: CNBC’s Steve Reisman will hear from the Federal Reserve when he speaks with Richmond Fed President Tom Barkin at 9 a.m. ET. He previously said consumers were “exhausted and frustrated” with high prices.
Big Mover: Musk Meltdown
Elon Musk’s companies remain under pressure.
tesla and space x After falling more than 3% during yesterday’s trading, it fell again in pre-market trading.
Why it matters: After Musk’s $474 million election gamble failed, selling pressure was centered around his companies. Mr. Musk now has fewer allies in Congress and more obstacles in Texas. Billionaire views: CNBC’s Luke Fountain reports on how Wall Street billionaires are reacting to the results, with Virgin’s Richard Branson and LinkedIn co-founder Reid Hoffman calling for a withdrawal from politics, and Elon Musk joking that his “election interference space laser” has failed.
Video shows SpaceX founder Elon Musk after SpaceX’s initial public offering on June 12, 2026 on Nasdaq Marketsite in New York.
Michael Nagle | Bloomberg | Getty Images
Revenue Impact: Qualcomm’s Shoulder Down
One of the biggest factors in the initial decline was Qualcomm. The company’s stock fell more than 9% in premarket trading after fourth-quarter sales of smartphone chips fell short of expectations.
Analysis: Seaport analyst Jay Goldberg says Qualcomm’s data center business is barely offsetting losses in smartphones Price targets: JPMorgan, Morgan Stanley and TD Cowen all lowered their price targets to $200 per share from $185. What’s next: CNBC interviews Qualcomm CEO Cristiano Amon after he tells investors there’s “no demand issue” today at 12:20 p.m. ET.
Qualcomm Inc. President and CEO Cristiano Amon speaks at a CES 2022 press event at the Mandalay Bay Convention Center in Las Vegas, Nevada on January 4, 2022.
Ethan Miller | Getty Images
Cryptowatch: Cautious Rebound
Cryptocurrencies are trading cautiously higher overnight as investors assess how much the new Democratic makeup of Congress will influence views in Washington.
Bitcoin is hovering around the $80,000 level, pulling the broader cryptocurrency space higher.
Why it matters: CNBC’s Tayana Machel considers how the interim results could reset the political calculus on cryptocurrencies, ushering in a more adversarial approach and leaving industry-friendly legislation like the Clarity Act on the back burner. What’s next?: Experts told CNBC’s Make It that we shouldn’t expect change anytime soon, saying, “platforms will continue to offer the products they currently offer, and there are still friendly regulators at the SEC and CFTC who are approving a wider range of crypto products than ever before.”
And finally…
Analysis: Democrats have one chance to extract concessions from Trump
Tuesday night’s landslide Democratic victory in the race puts a precarious new dynamic on the debt limit, the single biggest political risk for financial markets next year. Unless defeated Republicans show swift and unlikely unity in their first weeks in office to take the issue off the table, the long battle ahead is likely to be even trickier than before, adding further instability to an already volatile bond market.
daily dividend
—CNBC’s Sean Conlon, Spencer Kimball, Pippa Stevens, Luke Fountain, Matt Peterson and Mike Winters contributed to this report.
Jack Summers edited this version.
