Out of the blue
SPY•SPY•SPY•SPY•After Democrats won control of both chambers of Congress, oil prices plunged and a tech-led selloff erased about $3 trillion from the S&P 500. The 10-year Treasury yield fell to 4.82%, its lowest since September.
Democrats regained control of the House and Senate in decisive fashion, exceeding expectations. Brent crude fell 9% on Wednesday to around $94 a barrel, then rose nearly 4% on Thursday after fresh tanker attacks in the Gulf.
Fears that Democrats could slow data center construction hammered technology stocks on Thursday, wiping away roughly $3 trillion in S&P 500 market value. The Nasdaq posted its biggest one-day decline since the April 2025 tariff announcement and entered correction territory.
The 10-year Treasury yield fell as low as 4.82% on Thursday as lower energy prices raised expectations of more modest inflation and investors sought a haven. The article said renewed fighting in the Gulf could not be ruled out and noted that US payrolls data was due later Friday.
