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Market Wrap: Stocks, Bonds, Commodities |
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On Wednesday, major U.S. stock indices closed sharply higher after results of the Midterm Elections were announced, with the Dow Jones surging 1,569 points (+3.03%) to 53,356, the S&P 500 up 119 points (+1.58%) to 7,688, and the Nasdaq 100 up 256 points (+0.91%) to 28,437.
The Dow Jones marked its biggest one-day percentage gain since April 2025.
Democrats captured full control of the U.S. Congress, projected to win 259 House seats and a 54-44 Senate majority.
U.S. WTI crude oil futures retreated 7.97 dollars (-8.29%) to 88.12 dollars a barrel after Vice President Vance blamed the Iran war for the midterm rout and markets priced a higher chance of U.S.-Iran de-escalation.
Energy majors tracked the oil drop, with Occidental Petroleum (OXY) falling 5.13%, ExxonMobil (XOM) down 4.62%, and Chevron (CVX) down 3.69%.
Regarding mega caps, Microsoft (MSFT) surged 6.68%, marking a record closing high, Amazon (AMZN) jumped 6.12%, Apple (AAPL) climbed 5.31%, Alphabet (GOOGL) advanced 3.18%, and Meta Platforms (META) was up 1.44%.
However, Tesla (TSLA) fell 3.34% and Nvidia (NVDA) dropped 3.17%.
In Texas, Democrat Gina Hinojosa won the governor race, ousting Republican Greg Abbott. She pledged an immediate data-center moratorium in a state that holds roughly 27% of U.S. data-center capacity.
As a result, data-center and neocloud names were hit hard, with Vistra (VST) falling 13.83%, Iren (IREN) down 11.24%, CoreWeave (CRWV) down 9.90%, and Nebius (NBIS) down 6.67%.
Semiconductor stocks closed mixed. Advanced Micro Devices (AMD) rose 1.01% and Qualcomm (QCOM) jumped 5.33%, while Micron Technology (MU) tumbled 7.00%, Super Micro Computer (SMCI) sank 5.70%, and Arm Holdings (ARM) was down 5.28%.
Healthcare names led the rotation, with Centene (CNC) gaining 12.64%, Universal Health Services (UHS) up 10.91%, and HCA Healthcare (HCA) up 10.34%.
Moderna (MRNA) jumped 13.11% to a record closing level.
Renewable energy stocks were bought on clean energy hopes after the Democrats’ sweeping victory, with Canadian Solar (CSIQ) rising 6.73%, NextEra Energy (NEE) up 4.89%, and First Solar (FSLR) up 4.63%.
Defense stocks softened on spending-outlook fears, with Lockheed Martin (LMT) falling 6.88%, Northrop Grumman (NOC) down 4.53%, and RTX Corp (RTX) down 2.64%.
The U.S. 10-year Treasury yield declined 7.6 basis points to 4.890%.
European stocks also closed sharply higher, with the DAX 40 rising 2.22%, the CAC 40 up 1.96%, and the FTSE 100 up 1.79%.
Spot gold bounced 131 dollars (+3.34%) to 4,061 dollars an ounce.
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The U.S. dollar softened further on the Democrats’ sweeping victory, with EUR/USD climbing 37 pips to 1.1229, GBP/USD advancing 57 pips to 1.3472, and AUD/USD rebounding 39 pips to 0.7005.
The Bank of England is widely expected to raise its key interest rate by 25 basis points to 4.00% later today.
USD/JPY declined 24 pips to 158.43, USD/CHF dropped 37 pips to 0.8171, and USD/CAD was down 29 pips to 1.3979.
The ADP jobs report showed that the number of private payrolls rose by 86,000 in October, above expectations, while the ISM Services Index cooled to 54.5 in October.
Bitcoin advanced alongside risk assets, jumping 4% to 80,350 dollars.
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In Asian trading hours, spot gold jumped 76 dollars (+1.87%) to 4,136 dollars an ounce, hitting a two-week high.
Meanwhile, the U.S. dollar remained on the back foot. EUR/USD advanced to 1.1258, and GBP/USD traded near 1.3490 ahead of the Bank of England's rate decision.
USD/JPY eased to 157.98.
Bitcoin held steady near 80,734 dollars.
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In the U.K., the Bank of England is expected to raise its benchmark rate by 25 basis points to 4.00%.
In the eurozone, the producer price index is forecast to rise 10.9% year-on-year in September.
Germany's factory orders are projected to increase by 4.8% month-on-month in September.
France's industrial production is expected to grow 0.3% month-on-month in September.
In the U.S., initial jobless claims are expected to climb to 196,000 in the week ended October 31.
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