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Hello, this is Leonie Kidd with today's edition of Morning Squawk.
Cooler heads are prevailing after the monster rally that drove the best day for the Dow in over a year and a half.
Investors are now assessing the impact of a new Democratic controlled Congress and how that changes the market landscape.
Futures are mixed across Wall Street after the Dow closed its best day since April 2025, soaring over 1,500 points on the Democrats' decisive midterm victory.
A huge boost for stocks came from the plunging oil price. Brent and WTI have settled lower after falling over 8% in Wednesday's session. That came as the Trump administration admitted the role the Iran war had played in the poor Republican results.
It has been a mixed handover from Asia, where Japan's Nikkei and South Korea's Kospi fell sharply amid a deepening tech rout, despite strength across the wider market. European stock markets are broadly higher.
President Donald Trump told CNBC's Eamon Javers in a brief call late Wednesday that he can work with Democratic majorities in the next Congress on "many more things than people understand."
The pressure is still on Elon Musk's companies.
Tesla and SpaceX are down once again in premarket trading, after falling over 3% during yesterday's session.
One of the biggest early decliners is Qualcomm . Shares are down over 9% in premarket trading after fourth-quarter smartphone chip sales missed estimates .
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Cryptocurrencies are cautiously higher overnight as investors assess how much the new Democratic composition for Congress will impact Washington's view.
Bitcoin is hovering around the $80,000 mark, lifting the broader crypto space.
Analysis: The Democrats have one chance to extract concessions from Trump
The electoral sweep by Democrats on Tuesday night injects a new, unstable dynamic into the single biggest political risk to financial markets in the coming year: the debt limit . Unless a defeated Republican Party makes a swift and unlikely show of unity to take the issue off the table in its last few weeks in power, the protracted fight that will unfold is set to be nastier than ever, adding volatility to an already shaky bond market.
— CNBC's Sean Conlon, Spencer Kimball, Pippa Stevens, Luke Fountain, Matt Peterson and Mike Winters contributed to this report.
