US stocks surge as US midterm results drive oil down, fuel tech optimism
There is hope the Democrats' sweeping win will mean an end to the Iran war, among other issues.
US stocks experienced a significant surge on November 4, driven by Democrats' overwhelming victory in the midterm elections, which instilled optimism about the potential end of the Iran war. This optimism led to a decrease in oil prices, as Brent oil futures plunged 10% to below $100 a barrel, driven by hopes of a swifter resolution to the conflict.
Tech megacaps also saw a jump, as investors anticipated that a Democratic-controlled Congress would enforce AI spending cuts. The Magnificent Seven, a group of leading U.S. tech companies, rallied more than 2.2%, contributing to a 0.9% gain in the Nasdaq 100 Index. The Dow Jones Industrial Average reached its best day since 2025, while the S&P 500 Index gained 1.6%, with consumer discretionary and financials leading the gains.
Even sectors that were previously less robust, such as the Russell 2000 Index and a basket of profitless tech stocks, saw a rise of 1.6%. However, the S&P 500 Energy Index declined 4.8%, reflecting the drop in oil prices, marking its worst single-day performance since April 2025. Despite initial concerns over disappointing tech earnings due to potential regulatory scrutiny under a Democratic-led Congress, analysts noted that the market had largely overcome these worries, with a focus now on the potential impacts of the new political landscape on AI, data centers, and other sectors.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
