Wall Street surges as Democrats sweep US midterm elections (5 Nov)

Investors react to removal of political uncertainty

Investors felt encouraged by the removal of uncertainty surrounding the midterm election results. The Democratic clean sweep provided certainty regarding who would control Washington for the next two years. Market participants said this outcome calmed the political backdrop.

Peter Tuz, president at Chase Investment Counsel, stated that markets hate uncertainty. He noted that markets had been worried about the midterm election results and potential challenges. Tuz added that the victory by Democrats ended this uncertainty, noting that markets have historically performed well after midterm elections.

Buell stated that stocks historically rally after midterms as fading uncertainty brings relief.

Buell noted that a blue wave could spark volatility in sectors like tech and AI due to public opposition to data center buildouts. He believes markets can grind higher as investors applaud the decline in uncertainty.

The Bank of England is set to decide on interest rates on Thursday. The central bank is expected to raise rates for the first time in more than three years.

Democrats secure control of both houses of Congress

Associated Press projections show Democrats won a majority in the Senate with 54 seats and two races still pending. They also secured a majority in the House of Representatives with 228 seats, surpassing the 218-seat threshold.

Notable victories include James Talarico in the Texas Senate race and Abdul El-Sayed in the Michigan Senate race, with Democrats flipping at least seven Senate seats from Republicans.

While Trump retains veto power over legislation, he no longer faces the threat of a Congressional override.

Oil prices tumble amid election results and Iran war concerns

Oil prices tumbled on November 4, 2026, with both Brent and West Texas Intermediate (WTI) down 8%. This decline of more than 8% is attributed to the Democratic sweep in the midterm elections and uncertainty regarding the ongoing war in Iran.

Brent crude is down nearly 20% for the week, while WTI is down 15%, marking the biggest weekly decline since April 2020. Qatar has increased its mediation efforts to end the conflict between the United States and Iran.

Sector-specific market volatility hits defense and tech

Market reaction to the election results hit specific sectors, with the Philadelphia Semiconductor Index declining 2.7%. AMD shares fell 0.3% despite earlier pre-market gains of over 7%.

Data center and AI infrastructure companies declined due to anticipated stricter Democratic regulation, with Nebius dropping 6.8%, CoreWeave sliding 9.7%, and IREN slumping 11%.

Conversely, solar and clean energy stocks like Enphase Energy and First Solar rose 4.2% each.

Across the S&P 500, nine sectors rose while two fell, with five sectors gaining 3% or more. Consumer discretionary stocks rose 4.2%, while the energy sector fell 4.8%. Big healthcare stocks posted double-digit gains.

CVS Health shares drop following corporate split announcement

CVS Health shares dropped by more than 11% following the company's announcement to split into two separate entities. The company, which has a market capitalization of $116.96 billion, will divide its retail and insurance operations.

The second company, to be named CVS Pharmacy, will comprise approximately 9,000 pharmacies, mail pharmacy services, MinuteClinic, and the Health100 technology services business.

Rajiv Leventhal, a senior analyst at Emarketer, said: "Breaking up retail pharmacy from its insurance and PBM businesses poses operational risks by dismantling an integrated ecosystem designed to capture value across healthcare, including steering Aetna members and Caremark customers toward CVS pharmacies.".

Global markets and currencies shift as dollar hits monthly low

Global markets responded to the US election results on Wednesday with a shift in currency and commodity values. The US dollar fell to its lowest level since September 30, marking a monthly low. Gold prices rose 3.5% to move back above $4,000 per ounce, marking its best daily performance since August 19.

The British pound rose to a seven-week high near $1.35, while emerging-market currencies including the Mexican and Chilean pesos rallied. Bitcoin prices increased 3% to trade above $80,000. Bond yields also saw significant movement as German bund yields hit their lowest level in two months.

The 30-year UK gilt yield recorded its largest decline since May, and the 10-year yield reached its lowest point since July. US yields across the curve fell between 3 and 7 basis points. Regional market performance varied, with China rising 2.3%, Europe gaining 1.8%, the UK increasing 1%, and Brazil climbing 1%, while Japan declined 1.5%.

AMD reports revenue growth and non-cash charges

AMD chief executive officer Lisa Su announced that the company expects over 80% revenue growth in 2027. This forecast surpasses analyst expectations of 77% growth, with the company anticipating that 80% of sales will come from data center chips.

The company also reported a third-quarter profit impact from a non-cash charge exceeding $1 billion. This charge is related to warrants provided to OpenAI and Meta Platforms in exchange for commitments to purchase chips.

President Trump and VP Vance address election outcome

He attributed the Republican underperformance to his absence from the ballot and noted that pre-election polls indicated voter discontent regarding inflation, high fuel prices, and the war with Iran.

Vice President JD Vance blamed the war with Iran for the Republican losses in a social media post. Vance wrote: "The reason we lost is the war. The president himself said so last night.