US stocks wobble as tech sell‑off deepens, oil plunges before midterms

Chip and memory stocks tumble; Oracle and Intel hit hard

Oracle fell 8.6% after announcing plans to raise $20 billion through a combination of new stock and bonds, with the new five‑year notes paying 2.75 percentage points over Treasuries, as detailed in a report on its share‑raise plan. Intel shares dropped 8% on Monday, extending a 29% decline that began on Friday and following a near-50% fall in October. Marvel Technology slid 13% after revealing a $115 billion agreement to acquire Lumentum, whose shares fell 18% in the same announcement. Goldman Sachs analysts projected S&P 500 earnings-per-share growth to slow to 18% next year after reaching nearly 30% in 2026. The euro rose 0.3% to $1.1192 after Fitch revised France’s outlook to "negative" from "stable" due to worsening debt dynamics. In Australia, the ASX200 index closed at 8,856.50, down 52 points or 0.58%, despite finishing above its intraday low. The Materials sector fell 1.35% and Staples dropped 1.39% on the ASX, while Telecommunications rose 0.20% as defensive positions shifted toward Telstra Group, which a Morgan Stanley survey identified as the most preferred defensive stock among local active institutions, ahead of Coles Group and Woolworths Group.

AI‑spending slowdown fuels earnings worries

Anthropic disclosed a 47% sequential increase in revenue for its latest quarter in an updated S‑1 filing.

Carmignac head of global equities Kristofer Barrett said the next phase will focus on distinguishing companies that are already converting AI demand into cash, those still funding the build‑out, and the valuations investors are asked to pay.

Midterm election mood and Trump’s Iran signal pressure oil

US News reported that voters are in a sour economic mood as the midterm elections approach.

Israeli Prime Minister Benjamin Netanyahu has been pushing for U.S. air strikes against Iran to resume shortly after the U.S. midterm elections on Tuesday, November 3, 2026.

Brent prices dropped approximately $9 to near $104 amid reports of potential diplomatic talks between the U.S. and Iran.

Crude‑oil market slides and Goldman Sachs price revisions

Brent crude futures for December delivery fell 6.5% to $104.28 per barrel on Monday, November 2, 2026.

West Texas Intermediate crude fell 5.8% to $96.38 per barrel on the same day, marking its first time below $100 since mid‑September.

Goldman Sachs raised its December 2026 price targets to $105 per barrel for Brent and $94 per barrel for WTI, up from $90 and $81 respectively.

The bank also increased its 2027 average baseline forecasts to $88 per barrel for Brent and $78 per barrel for WTI, up from $80 and $73 respectively.

OPEC+ agreed over the weekend to maintain current production targets by leaving December production quotas unchanged.

Goldman Sachs increased its December Brent crude forecast to US$105 from US$90.

Policy calendar: Fed, ECB, payrolls and rate expectations

Investors are facing a pivotal week with Federal Reserve and European Central Bank policy decisions, a full earnings season, and US midterm elections scheduled for Tuesday.

The closely watched US non‑farm payrolls report is due on Friday.

The US Institute for Supply Management manufacturing PMI rose to 55.5 in October from 54.5 in September, beating Reuters’ forecast of 54.5.

US manufacturing PMI increased to 55.5 in October while input prices remained elevated.

Democratic Congress likely to tighten oversight of Venezuela oil deals

Democratic control of the House and Senate after the November 3 midterms could increase scrutiny of U.S. oil investments in Venezuela, analysts said the oversight may cool some investment in the country. The Atlantic Council’s David Goldwyn told the Atlantic Council Global Energy Center that “Congressional scrutiny could have a significant impact on investment in Venezuela,” but he added that projects such as Chevron’s and those aligned with Venezuela’s hydrocarbons law should remain secure. Horizon Engage’s Rachel Ziemba identified the North America Blue Energy Partners (NABEP) deal as a primary target for Democratic scrutiny, questioning the selection process, transparency and the U.S. government’s 35% equity stake granted in August 2026. NABEP, which holds rights to more than 65 billion barrels of proven reserves, reported that its crude output rose to over 200,000 barrels per day in mid‑October, up from 18,000 barrels per day two years earlier after a $1 billion investment. The company said output increased by 10% – about 20,000 barrels per day – since the August 31 agreement, attributing the rise to veteran Venezuelan engineers. Secretary of State Marco Rubio said the partnership gives NABEP the certainty needed for massive investments. Venezuelan state oil company PDVSA and its partners produced 1.218 million barrels per day in September, according to the Ministry of Hydrocarbons, and PDVSA’s president Hector Obregón expects production to reach 1.3 million barrels per day by year‑end and 1.5 million barrels per day by the end of 2027. Representative Joaquin Castro, a Democrat from Texas, failed to secure a subpoena on September 15 after a 6‑6 party‑line vote, leaving federal agency records on the NABEP deal unretrieved. Rice University’s Kenneth Medlock noted that while congressional scrutiny might deter smaller producers, larger firms will continue to base decisions on long‑term commercial risk and profitability. A senior State Department official said institutional reforms in Venezuela, including new Supreme Justice Tribunal magistrates and changes to the National Electoral Council, are underway to enable a credible presidential election. Analysts also said the S&P 500 could receive a meaningful boost once the midterm votes are counted, regardless of which party wins. Eurozone manufacturing activity held up well in October, with the PMI at 52.7, the highest since May 2022, although new‑order growth slowed and energy and supply‑chain costs squeezed margins. The Reserve Bank of Australia was expected to raise its cash rate by 25 basis points on November 3, while Westpac met its FY26 cash NPAT expectations but saw its price target lowered to A$32.10, and RBC Capital lifted Macquarie Group’s target to $303 ahead of its first‑half‑2027 results due on November 6. Block Inc. is scheduled to release its quarterly update later on November 3. ISM manufacturing index rose one point to 55.5, marking ten consecutive months of expansion.