Wall Street rallied and European shares reached a two-month high on Wednesday after Democrats won control of both chambers of the US Congress. Brent crude fell nearly 9% as traders bet the result would make an escalation of the war with Iran less likely. In early Asian trading on Thursday, chipmakers and data centre suppliers came under pressure as investors weighed the prospect of tighter US oversight.
Wall Street reverses early losses
US equity futures initially fell as the scale of the Democratic victory became clear. By Wednesday’s close, the Dow Jones Industrial Average had gained 3.0%, or nearly 1,570 points. The S&P 500 rose 1.6% and the Nasdaq Composite added 1.4%. Hospital operators and retailers serving lower-income households were among the strongest performers.
The clear result eased some political uncertainty, and investors assessed how a Congress controlled by Democrats might constrain President Donald Trump’s policy agenda. Shares in data centre operators fell as investors anticipated closer congressional scrutiny of new projects.
Asian chipmakers fall as solar shares gain
South Korea’s chip-heavy Kospi fell 4% in early Thursday trading, while Taiwan’s benchmark dropped 1.8% and Japan’s Nikkei slipped 0.5%. Suppliers of technology equipment were among the stocks weighing on the Japanese market. Solar supply chain shares gained as investors anticipated stronger congressional support for renewable energy.
Cheaper oil lifts bonds and weighs on the dollar
Brent traded near $93.50 a barrel early on Thursday after falling below $100 the previous day. Traders priced in a lower risk of renewed US military strikes against Iran. If sustained, cheaper energy could ease inflation pressure and reduce the likelihood of further interest rate rises.
US government bonds rallied, taking the benchmark 10-year Treasury yield to 4.87% in early Tokyo trading. The dollar weakened against the euro. Emerging-market equities also recovered from sharp early losses on Wednesday as lower US yields and a softer dollar supported demand for developing-market assets.
Newshub Editorial in North America – 5 November 2026
Wall Street rallied and European shares reached a two-month high on Wednesday after Democrats won control of both chambers of the US Congress. Brent crude fell nearly 9% as traders bet the result would make an escalation of the war with Iran less likely. In early Asian trading on Thursday, chipmakers and data centre suppliers came under pressure as investors weighed the prospect of tighter US oversight.
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