AI stocks, oil fall as investors bet on change after US election 'blue wave'
SPY•US stocks and gold rose after Democrats won sweeping midterm victories, while semiconductor shares fell 3.1% and Brent crude was down about 20% for the week. Gold gained 5% in two days to trade above $4,100 an ounce.
1. Stocks diverge after election
The S&P 500 rose 1.6% on Wednesday as investors responded to the clear election result, while the Philadelphia semiconductor index fell 3.1% and had lost a quarter of its value in a month. European stocks also advanced, with the STOXX 600 up 0.7% on Thursday and close to its August record high.
2. Oil and gold move sharply
Brent crude fell nearly 9% overnight and was down about 20% for the week, heading for its biggest weekly loss since April 2020. Oil later traded around $95 a barrel, up 0.8% on the day. Gold rose 5% in two days to above $4,100 an ounce, while the 10-year US Treasury yield fell 2 basis points to 4.87%.
3. AI scrutiny in focus
Investors weighed the prospect of greater scrutiny of data centres, power demand and consumer costs after Democratic candidates who campaigned partly on data-centre construction moratoriums won in Texas and Georgia. State Street Investment Management strategist Masahiko Loo said the result raised political risk around US AI without necessarily derailing the broader AI investment cycle.
