Oil tanks, stocks leap on US midterms
SPY•SPY•SPY•SPY•Stocks rose broadly after Democrats won control of both houses of Congress, while oil prices fell 8% and gold gained 3.5%. Brent crude was down nearly 20% for the week and WTI 15%.
Investors moved into stocks, bonds, non-dollar currencies and gold on Wednesday after Democrats won control of both houses of Congress. The Nasdaq gained 1.4%, the S&P 500 rose 1.6% and the Dow advanced 3%, its best day since April last year. Nine S&P 500 sectors rose, while energy fell 4.8%.
Brent and WTI crude fell 8% on Wednesday. Brent was down nearly 20% for the week and WTI 15%, putting both on course for their biggest weekly declines since April 2020. Gold gained 3.5%, returning above $4,000 an ounce.
The dollar fell to its lowest level since September 30, while emerging-market currencies rallied. US yields declined 3 to 7 basis points across the curve. The Bank of England was expected to raise interest rates on Thursday, its first hike in more than three years.
