Washington reset, market meltdown and the Iran oil bet: The financial week in five charts
SPY•After Democrats won control of both houses of Congress in the U.S. midterm elections, the Nasdaq fell as much as 14% from its record, with $2 trillion wiped off its market capitalization on Thursday. Brent crude fell below $100 a barrel, on track for its biggest weekly decline since 2020.
1. Stocks and politics
The article said Democrats won control of both houses of Congress in the U.S. midterm elections. After investors reassessed their initial reaction, a tech selloff hit AI infrastructure companies particularly hard; the Nasdaq was down as much as 14% from its all-time high, reached one month earlier, and $2 trillion was wiped off its market capitalization on Thursday.
2. Oil and election bets
Brent crude fell below $100 a barrel, on track for its biggest weekly decline since 2020, as investors weighed whether the Republican defeat could prompt President Donald Trump to seek a quick resolution to the war in Iran. Trump said higher gasoline costs played a role in the election result and defended the campaign, saying, “You can't let Iran get a nuclear weapon.” Prediction markets also showed Democratic Senator Jon Ossoff as the favourite to win the White House in two years, ahead of Vice President JD Vance.
3. Cybersecurity concerns
The article cited recent cyber theft, the hacking of Ukraine's air defense alert systems and the shutdown of supermarket freezers across Europe. It said attempted breaches of encrypted financial accounts and economic and military sabotage had become almost routine, and raised the possibility that generative AI could intensify the activity.
