Daily News
Democrats Flip Senate After Winning House; Asia Chip Stocks Tumble; S&P 500 Snaps 3-Day Skid as Chips Rebound; Gold Rises to Around $3,950; Crude Steadies Above $96
04 November 2026
Today in Brief
Asian semiconductor stocks tumbled on Wednesday as Democrats were projected to win both the House and the Senate, stoking worries over curbs on AI infrastructure buildout — Softbank Group plunged over 8%, Disco fell 10.19% and Tokyo Electron dropped 7.04%, while SK Hynix and Samsung Electronics declined 5.08% and 3.87%, respectively. U.S. stocks were mixed on Election Day — the Nasdaq jumped 0.83% to 25,372.01 and the S&P 500 climbed 0.36% to 7,568.92 to break a three-day losing run, while the Dow lost 197.26 points to 51,786.72, weighed down by Apple. Gold rose to around $3,950 an ounce on a weaker US dollar and falling Treasury yields, while crude steadied above $96 per barrel as investors weighed new mediator proposals in US-Iran peace talks.
In other news: Democrats were projected to flip Senate seats in Iowa, Kansas, North Carolina, Ohio, South Carolina and Texas and win at least 245 House seats; Iran’s parliament speaker Mohammad Bagher Ghalibaf said Americans had said “NO TO WAR”; former New York Fed President Bill Dudley warned AI infrastructure spending could exceed $10 trillion; President Trump said the U.S. will stop paying Israel after year-end; U.S. officials held up equipment approvals for SK Hynix’s China expansion, complicating its New York chip plans; Estee Lauder set an adjusted operating margin target of 16.5% to 18.5% for fiscal 2030; Oracle reportedly abandoned a $7 billion Tencent AI deal under Trump administration pressure; and AMD shares jumped 8% in extended trading as data centre revenue nearly doubled.
Asia chip stocks tumble as Democrats flip Senate after winning House
Asian semiconductor stocks tumbled Wednesday as Democrats are projected to win both the House and the Senate in the U.S. midterm elections. That has stoked worries over curbs on AI infrastructure buildout at a time when AI-linked stocks have been declining on concerns about weaker spending. Japan’s Softbank Group plunged over 8%, while chipmaking equipment company Disco fell 10.19%. Advantest shed over 8% and Renesas Electronics declined 7.64%. Tokyo Electron was down 7.04%. South Korean chip heavyweights also came under pressure, with SK Hynix dropping 5.08% and Samsung Electronics declining 3.87%. Seoul Semiconductor shed 4.37%.
S&P 500 snaps 3-day skid on Election Day as chip stocks rebound
The Nasdaq Composite rose on Tuesday as investors moved back into key technology stocks after recent pressure and geared up for U.S. midterm election results.] The tech-heavy index jumped 0.83% and closed at 25,372.01, recouping some of its latest losses. The Nasdaq-100 rose 0.7% to 28,180.26, remaining in correction territory and down about 10% from its recent high. The S&P 500 climbed 0.36% to 7,568.92 to break a three-day losing run. The Dow Jones Industrial Average lost 197.26 points, or 0.38%, to 51,786.72. The 30-stock index was weighed down by Apple shares. Apple fell almost 2% after the iPhone maker issued a disappointing margin forecast late Monday and iPad sales in the fiscal fourth-quarter missed the Street’s estimates.
Gold prices rose to around $3,950 an ounce on Wednesday, supported by a weaker US dollar
Gold prices rose to around $3,950 an ounce on Wednesday, supported by a weaker US dollar and falling Treasury yields as early US midterm results pointed to Democrats gaining ground in both chambers of Congress. Markets interpreted the results as potentially increasing the likelihood of political gridlock in Washington and limiting prospects for further fiscal expansion. Meanwhile, easing oil prices amid hopes of continued US-Iran diplomacy helped alleviate inflation concerns, although Tehran and Washington remained far from a deal to end their conflict. President Donald Trump also declined to rule out renewed US military operations following the elections. Separately, investors awaited Friday’s US nonfarm payrolls report for further clues on the Federal Reserve’s policy outlook.
Crude oil steadied above $96 per barrel on Wednesday after a sharp decline earlier this week
Crude oil steadied above $96 per barrel on Wednesday after a sharp decline earlier this week, as investors weighed the possible outcome of ongoing peace negotiations between the US and Iran. Qatar’s Foreign Ministry spokesperson stated that both countries are evaluating new proposals put forward by mediators to bridge their differences. However, Iran’s national security chief indicated in a social media post that Washington’s response remains unsatisfactory. The US also conducted defensive strikes against Iran earlier this week, targeting surface-to-air missile systems used against American assets. However, the limited scope of the strikes suggested no immediate return to large-scale military operations.
Democrats flip Senate after winning House
Democrats’ epic night led to projected victories in the House and Senate, with a commanding victory in at least the House. The party also flipped multiple governors’ offices in an election that serves as a rebuke to President Donald Trump. Even Texas turned blue. Democrats are projected to have flipped Senate seats from Republicans in Iowa, Kansas, North Carolina, Ohio, South Carolina and Texas, the Associated Press projected. Two key Democratic-held seats in Michigan and Minnesota are still being counted. Democrats are projected to have a commanding majority in the U.S. House, surging past the 218 seats needed to control the chamber, according to a CNBC’s Election Desk. The desk projects Democrats will win at least 245 House seats.
Americans have said ‘NO TO WAR,’ Iran speaker says as Democrats take Congress
Iran’s speaker of parliament Mohammad Bagher Ghalibaf said Americans have said “NO TO WAR,” as projections from U.S. midterm elections showed that Democrats have flipped both houses of Congress. Posting on X after projections showed that Democrats will have a majority in the House and Senate over the coming two years, Ghalibaf said that “Conscience or the cost of living, Americans said NO TO WAR, and we endorse this message.” “If the [U.S. government] betrays their public will to serve international paymasters and blackmailers, it will learn our NO comes with a Nightmare.” Last Saturday, Iranian Supreme Leader Mojtaba Khamenei called for Tehran’s armed forces to meet “any level or type of threat” with “an immediate, impactful, and geographically unrestricted response.”
AI spending boom could exceed $10 trillion, raising fears of financial fallout
The scale of the artificial intelligence investment boom is becoming a source of concern, with spending on infrastructure potentially exceeding $10 trillion if companies follow through on their current plans. Bill Dudley, former president of the Federal Reserve Bank of New York, warned in a Bloomberg Opinion article that the race to build AI capacity risks creating an industry with far more infrastructure than it can ultimately support. At least seven or eight companies are pursuing ambitions to become major AI hyperscalers, but Dudley believes only two or three may emerge as dominant players. The economics of cloud computing, where scale and network effects favour a handful of large providers, could play out similarly in AI. That raises questions about whether the industry can generate enough revenue to justify the enormous capital commitments. Given the rapid depreciation of data centres and computing equipment, Dudley estimates that AI infrastructure could require more than $3 trillion in annual revenue to deliver an adequate return on investment.
Trump says US will stop paying Israel after year-end
US President Donald Trump on Tuesday said he made a deal with Israeli Prime Minister Benjamin Netanyahu and that Washington would no longer be providing funding to Israel after the end of this year. “Now, as far as paying Israel, Bibi Netanyahu and I have made a deal that we give Israel $4 billion a year, and we made a deal months ago that we’re stopping,” Trump told Fox News’ Fox and Friends. “We’ve already agreed that by the end of this year we won’t be paying Israel. Now we’ll help Israel if they need it.”
SK Hynix’s New York chip plans hit snag over US restrictions on China, sources say
US officials have held up approval for American chipmaking equipment needed by SK Hynix to expand production in China, complicating the South Korean chipmaker’s plans for new memory-chip plants in New York, according to people familiar with the matter. SK Hynix is seeking US export licenses to equip its Dalian plant, arguing that increased production there would help fund its planned US expansion. But the Commerce Department has yet to approve the new licenses, the people said. Its Solidigm unit plans to invest about $45 billion and build two NAND plants in Marcy, New York, two people said, with investment potentially reaching about $100 billion over time. NAND is memory that retains data even when power is turned off and is used for storage in data centres.
Estee Lauder sets 2030 growth, margin targets as turnaround advances
Estee Lauder said on Wednesday it aims to lift its adjusted operating margin by as much as 5.6 percentage points over the next three years, as the cosmetics maker builds on progress in its turnaround. The company is targeting an adjusted operating margin of 16.5% to 18.5% in fiscal 2030, compared with its fiscal 2027 guidance of 12.9% to 13.8%. The targets come days after Estee Lauder raised its fiscal 2027 sales and profit forecasts, citing strong demand for premium fragrances and skincare products. “We are now entering a new chapter, moving beyond restoring growth to accelerating sustainable, profitable growth and creating long-term value,” its CEO Stephane de La Faverie said in a statement as the company held a capital markets event in Shanghai. “Our fiscal 2027 outlook reflects this momentum, with accelerating organic sales growth and another year of significant profitability improvement,” de La Faverie said.
Oracle abandons $7 billion Tencent AI deal under Trump pressure
Oracle has cancelled a multibillion-dollar chip leasing contract with Tencent after bowing to pressure from the Trump administration, the Financial Times reported on Wednesday. US officials approached Oracle to raise concerns about the Tencent deal, the newspaper said, citing people familiar with the matter Tencent also received visits from top officials in Guangdong, where the group is based, who asked the company to support domestic Chinese chips, the report said Reuters could not immediately verify the report. Oracle, Tencent and the White House did not respond to Reuters requests for comment on the report The Financial Times reported last month that Tencent signed its largest overseas lease deal, worth an estimated $7 billion, with Oracle
AMD stock jumps 8% on earnings as data centre revenue nearly doubles
Advanced Micro Devices reported third-quarter earnings on Tuesday that beat Wall Street’s expectations, with revenue jumping 45% and data centre sales nearly doubling from a year earlier. The stock was up 8% in extended trading. Revenue increased from $9.25 billion a year earlier, AMD said in a statement. Neoclouds like Core Weave and Nebius rallied earlier Tuesday and remained higher after AMD reported results. CEO Lisa Su said on the earnings call that she expects server revenue to double year over year in 2027 and data centre AI growth to accelerate even faster than the company had projected 90 days ago. The company expects data centre to drive the majority of its revenue and earnings growth.