Daily News
Dow Soars 1,500 Points for Best Day Since April 2025 on Clear-Cut Democratic Win; S&P 500 and Nasdaq Rally; Gold Climbs Toward $4,150; Crude Falls Below $87
05 November 2026
Today in Brief
Asia-Pacific markets were mixed on Thursday, with Japan’s Nikkei 225 gaining 0.49% and the Topix rising over 2%, while South Korea’s Kospi fell 2.33% and the Kosdaq slipped 1.24%; Australia’s S&P/ASX 200 rose 1.39%. U.S. stocks surged on Wednesday as investors digested the midterm results — the Dow jumped 1,569.40 points, or 3.03%, to 53,356.12 for its best day since April 9, 2025, the S&P 500 gained 1.58% to 7,688.62, and the Nasdaq climbed 1.44% to 25,736.51 — as U.S. crude fell more than 8%. Gold climbed toward $4,150 an ounce to two-week highs on hopes for an end to the US-Iran conflict, while crude fell below $87 per barrel, heading toward a one-month low.
In other news: Markets cheered the Democratic sweep, betting that a divided Washington will mean fewer policy shocks; China mobilized state-linked companies to take bigger stakes in overseas mines to tighten its grip on critical minerals; the Bank of England was widely expected to raise rates to 4% from 3.75%, its first hike in three years; the UAE was reported to be weighing a third crude pipeline to bypass the Strait of Hormuz, a report Adnoc called inaccurate; Microsoft reportedly rejected an option to more than double its AI computing deal with Nscale; Elon Musk’s business empire braced for a Democratic wave after Texas elected its first Democratic governor in more than three decades; Elf Beauty raised its full-year sales guidance as net sales rose 51% to $520.8 million; and Qualcomm shares fell more than 9% in extended trading on weak smartphone chip sales.
In Asia, Japan’s Nikkei 225 gained 0.49% on Thursday, while the Topix rose over 2%
In Asia, Japan’s Nikkei 225 gained 0.49% on Thursday, while the Topix rose over 2%. South Korea’s Kospi was down 2.33%, and the tech-focused, small-cap Kosdaq fell 1.24%. Australia’s S&P/ASX 200 was up 1.39%. Trading on Wednesday stateside showed investors adjusting to midterm results, which showed Democrats flipping control of the House of Representatives and Senate — securing comfortable majorities in both chambers — and a slew of governorships, too.
Dow soars 1,500 points for best day since April 2025 on clear-cut Democratic win, falling oil
The Dow Jones Industrial Average jumped 1,569.40 points, or 3.03%, to close at 53,356.12. The 30-stock index moved back above 53,000 for the first time since Sept. 8 and posted its best day since April 9, 2025, when Trump announced a pause on his so-called reciprocal tariffs. The S&P 500 gained 1.58% to end at 7,688.62, while the Nasdaq Composite jumped 1.44% to 25,736.51. Stocks extended their gains after U.S. crude oil fell more than 8% as Vice President JD Vance blamed the Iran war for the election losses the Republican party suffered Tuesday. Brent futures traded more than 8% lower as well.
Gold climbed toward $4,150 an ounce on Thursday, extending the previous session’s gains to reach two-week highs
Gold climbed toward $4,150 an ounce on Thursday, extending the previous session’s gains to reach two-week highs as Democratic victories in the US midterm elections strengthened hopes for an end to the US-Iran conflict, triggering a sharp decline in oil prices. The precious metal also found support from a weaker US dollar and declining Treasury yields, which enhanced its appeal to investors. President Donald Trump conceded that Republicans lost because of the war and acknowledged gasoline prices as a factor behind the defeat, while indicating that there were no immediate plans to ramp up attacks on Iran. Lower oil prices could ease inflationary pressures, reducing concerns over potential near-term interest rate increases. Investors are now turning their attention to Friday’s key US employment report, which could influence expectations for the Federal Reserve’s monetary policy. Traders currently see a 79% probability of a Fed rate hike in December, according to the CME FedWatch Tool.
Crude oil fell below $87 per barrel on Thursday, extending a decline of more than 8% in the previous session
Crude oil fell below $87 per barrel on Thursday, extending a decline of more than 8% in the previous session and pushing prices toward a one-month low. The drop came as a Democratic sweep in the US midterm elections fuelled expectations that the Trump administration could face growing pressure to bring the war with Iran to an end. President Donald Trump acknowledged that Republicans suffered losses largely due to the conflict and pointed to rising gasoline prices as a major contributing factor, while indicating no immediate plans to ramp up military strikes against Iran.
Markets cheer Democratic win, betting divided Washington means fewer policy shocks
Over the past two years, the Trump administration’s sweeping policy shifts in the absence of opposition from a Republican-controlled Congress repeatedly buffeted global markets, from tariffs to the Iran war. On Wednesday, as investors digested a historic Democratic sweep in US midterm elections, markets rallied. The reason: a bet that gridlock in Washington will curb some of the worst-case outcomes in areas such as the Iran war, even though there were fresh worries, most notably about the backlash against AI infrastructure buildout that has driven economic growth and corporate profits, investors said. “Gridlock is the market’s friend,” said Mark Hackett, chief market strategist at Nationwide. “Regardless what either side is saying right now, anything that isn’t absolutely necessary is very unlikely to pass in the next two years, which does add to the predictability of the environment for investors.”
China expands overseas mining stakes, tightening grip on critical minerals
China is mobilizing state-linked companies to take bigger ownership stakes in mines overseas, seeking to strengthen its stranglehold over the metals vital for electric vehicles, semiconductors and jet engines The state-led push could give Beijing greater leverage over global supplies of critical minerals and who gets access to them, analysts say. “China is rolling out a state-coordinated global mining strategy” to replace firm-level decision-making, said Dan Wang, China director at Eurasia, adding that the model would allow for larger, better-aligned global mining investments. In April, a dedicated overseas bureau was set up to oversee investments abroad by central state-owned enterprises. Several government agencies, ministries and policy banks have been mobilized to steer overseas mining deals.
Bank of England poised to hike rates for first time in 3 years
The Bank of England is widely expected to raise interest rates for the first time in three years on Thursday due to mounting inflation pressures from the US-Iran war, taking a path already embarked on by all its main peers. Economists polled by Reuters expect the BoE’s Monetary Policy Committee to vote 7-2 to raise Bank Rate to 4% from 3.75% — the first increase since August 2023, when inflation was over 6%, and the first change in rates since a cut last December. “I think they will have pushed through with a hike,” said Hetal Mehta, chief economist at wealth managers St James’s Place. A pickup in energy prices a couple of months ago and more recent signs of resilient economic growth are likely to have tipped the balance on the MPC, she added.
UAE weighs third crude pipeline to bypass Strait of Hormuz, Bloomberg reports
The United Arab Emirates is evaluating plans to construct a third crude export conduit to its eastern coast, according to reporting from Bloomberg, as Abu Dhabi accelerates a multibillion-dollar strategic pivot designed to bypass the volatile Strait of Hormuz entirely. The proposed infrastructure would link western production hubs directly to the port of Fujairah outside the Persian Gulf, potentially opening transit capacity to third parties and insulating key international buyers from maritime chokepoints. State-owned Abu Dhabi National Oil Co. has already begun briefing select Asian refiners on the conceptual link, though people familiar with the matter noted the route and overall framework remain subject to revision. For its part, Adnoc strongly pushed back against the disclosure, stating it advised Bloomberg that the account is inaccurate and purely speculative.
Microsoft rejects multibillion-dollar AI deal with UK’s Nscale,
Microsoft has rejected an option to more than double the size of its existing agreement with Nscale to rent computing power at a Texas data centre, walking away from a potential deal worth ten of billions of dollars, the Financial Times reported on Thursday, citing people familiar with the matter. Here’s what to know: The report comes weeks after Microsoft pulled out of a deal to anchor Nscale’s flagship data centre project in Loughton, Essex, after power connection delays pushed its expected supply date into the 2030s Reuters could not immediately verify the report Microsoft and Nscale did not immediately respond to requests for comment outside business hours. Nvidia-backed Nscale filed for a US initial public offering in September, with Microsoft and Anthropic expected to be among its major customers
Elon Musk’s business empire braces for Democratic wave as Texas flips blue
As Republicans suffered a landslide defeat and Texas elected its first Democratic governor in more than three decades, one of the biggest losers of the US midterms was not on the ballot: billionaire Elon Musk. The world’s richest man spent nearly half a billion dollars to back Republican candidates and keep Texas red – a state home to his automaker Tesla, rocket-to-AI company SpaceX and a planned chipmaking venture between the two. Those bets unravelled as Democrats seized both chambers of Congress and Gina Hinojosa defeated Greg Abbott in the Texas governor’s race, in a stinging rebuke to US President Donald Trump, a close Musk ally whom the billionaire helped elect. Musk, who urged his followers on X to vote Republican as recently as Tuesday, now faces a resurgent Democratic Party that he has spent years antagonizing.
Elf sees Q2 sales boost with marketing, Europe expansion
Cosmetics company Elf Beauty raised its full-year sales guidance from a range of 18% to 20% to 22% to 24%, as its marketing campaigns and the international expansion of its prestige brand Rhode were expected to continue attracting shoppers. Elf’s net sales increased 51% to $520.8 million compared to last year, beating Wall Street expectations of $470.3 million. The Oakland, California-based company said US and international retail and e-commerce sales drove the growth. “Seventy-five percent of Rhode’s following is outside of the US, so we know that international growth is a big opportunity for the brand,” Elf Chief Financial Officer Mandy Fields told Reuters. Younger shoppers are gravitating to prestige cosmetics and skincare brands, a trend that Elf is also seeing with Rhode, which it acquired in August last year.
Qualcomm shares slide as smartphone weakness clouds growth push
Qualcomm on Wednesday fell short of Wall Street estimates for fourth-quarter smartphone chip sales on sluggish demand and declining Apple-related revenue, sending its shares down more than 9% in extended trading. A better-than-expected revenue forecast for its nascent data-center segment failed to enthuse investors as they focused on the sharp decline in the company’s core business. Global smartphone shipments fell 20% in the September quarter to a 14-year low, according to Counterpoint Research, as surging memory chip costs drove up device prices amid booming demand from AI data centers. Revenue from Qualcomm’s handset unit, which makes chips for smartphones, fell 26% to $5.14 billion in the fourth quarter, dragging the chip segment’s revenue down 8% to $9.02 billion.