Democratic sweep of Congress lifts Dow 3% while chipmakers and oil tumble

The Dow jumped 3.03% to 53,356 on its best day since April 2025, but chip stocks fell about 3% and US crude sank 8.29% to $88.12 on hopes of ending the Iran war

Deepakshi

Kristal Research & Marketing team

5 Nov

Key takeaways — AI summary

Democrats won both houses of Congress, and the Dow rose 3.03% to 53,356 (best day since April 2025), the S&P 500 gained 1.58% to 7,688.62 and the Nasdaq Composite added 1.44%; the VIX fell below 17.
The AI trade split: chip stocks fell about 3% as a new Texas governor pledged to halt data-centre construction (Jefferies flags roughly 13.3 GW at risk), hitting Hut 8 (-23%), Vistra (-14%) and Vertiv (-13%), while cloud giants Amazon (+6.18%), Microsoft (about +6% to a record) and Apple (+5.3% to a record) rallied.
Oil had its worst day since April — US crude -8.29% to $88.12 and Brent -8.67% to $94.62 (down 19.6% in three days) — after officials signalled Democrats would end the Iran war; the 10-year Treasury yield fell to 4.89%, the dollar hit a one-month low and gold rose about 3% back above $4,000.
Traders still price about a 79% chance the Fed raises rates at its December 8-9 meeting; ISM services slipped to 54.5 and ADP counted 86,000 new October jobs, above the 69,000 expected.
The chip sell-off spread to Asia, with South Korea's Kospi down 3.5%, SK Hynix -7.4%, Samsung -5.7% and Tokyo Electron -7.7%, while Hong Kong's Hang Seng rose 2.8%.

Generated by Kristal AI · reviewed by the research desk

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