Global markets: Chip stocks, oil sink after Democratic election sweep
SPY•Oil and chip stocks fell in Asia after Democrats won a series of US midterm election victories, while broad stock indexes climbed. Brent was down about 20% for the week, and the 10-year Treasury yield hit a two-month low of 4.85%.
1. Markets react to election
Oil, chip stocks and the dollar fell in Asia after Democratic election victories raised hopes for an end to the US-Iran war. The S&P 500 closed 1.6% higher, while European shares reached a two-month high. The 10-year Treasury yield fell to a two-month low of 4.85%.
2. Chip stocks struggle
South Korea’s KOSPI sank nearly 6%, while Taiwan’s benchmark index fell more than 3%. Nasdaq futures slid 1% as investors weighed the prospect of tougher scrutiny of data centres and AI infrastructure. Solar supply chain shares jumped on expectations of greater Democratic support for renewables.
3. Oil drops on peace hopes
Brent crude fell nearly 9% overnight to below $100 a barrel and was down about 20% for the week. At $94.21, it was testing overnight lows as traders bet the election result could make President Donald Trump less likely to escalate the war with Iran.
