CBN News, November 5, 2026, 07:51:53 - Listen to the news
Author: Fan Zhijing Editor-in-Chief: Ge Weier
*The three major stock indices closed higher, with the S&P 500 index approaching 7,800 points;
*Long-term U.S. Treasury yields have fallen, with the 10-year Treasury yield breaking below the 4.90% mark;
The Philadelphia Semiconductor Index hit a six-month low.
U.S. stocks rose across the board on Wednesday. The decisive victory of the Democratic Party in the U.S. midterms, and U.S. President Donald Trump's acceptance of the election results, eliminated the political uncertainty risks that had plagued Wall Street. Meanwhile, international oil prices plummeted as investors weighed the possibility that the U.S. midterms could accelerate the end of the Iran conflict.
As of the close, the Dow Jones Industrial Average rose by 1569.40 points, or 3.03%, to 53,356.12 points, surpassing 53,000 points for the first time since September 8 and recording its best single-day performance since April 9, 2025; the Nasdaq Composite Index rose by 1.44% to 25,736.51 points; the S&P 500 Index rose by 1.58% to 7,688.62 points.
【Popular Stocks Performance】
Star tech stocks soared, with Microsoft and Amazon rising by over 6%, Apple by 5.31%, and NVIDIA falling by 3.17%.
Due to concerns about tightening regulations on artificial intelligence, data center stocks have declined. In the Texas governor election, Democratic candidate Gina Hinojosa won, and she has pledged to immediately implement a ban in this key data center hub. The slowdown in the expansion of artificial intelligence infrastructure may alleviate the cash pressure on tech companies, while putting pressure on operators and suppliers that rely on rapid construction.
The Philadelphia Semiconductor Index fell 3.6%, reaching a six-month low. Micron Technology tumbled more than 7%.
Storage chip stocks are sluggish, with SK Hynix, Micron Technology, and Western Digital falling by more than 5%.
The optical communication sector performed poorly, with Lumentum falling by nearly 8%, and Coherent falling by over 6%.
SpaceX under Musk and Tesla are weakening, with both falling by more than 3%. Musk has invested nearly $500 million to support Republican candidates, including efforts to maintain control of the Republican Party in Texas, where his company is located.
Defense stocks Northrop Grumman, RTX and Lockheed Martin declined as Trump's proposed $1.5 trillion defense budget may face greater resistance in Congress.
Solar and clean energy stocks are rising, with Invesco solar ETF increasing by 6.1%. Investors bet that a Democratic Party's complete victory will help maintain federal support for clean energy development.
The NASDAQ China Golden Dragon Index rose by 3.49%, Alibaba increased by 4.91%, Baidu rose by 4.50%, NetEase rose by 4.33%, JD.com rose by 3.05%, and Pinduoduo rose by 2.47%.
【Market Overview】
According to predictions by American media, the Democratic Party will not only gain control of the House of Representatives in the midterms but also secure at least 51 out of the 100 seats in the Senate, reclaiming control of that chamber as well.
"The stock market rose significantly today because the clarification of the election reduced uncertainty," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. "The election created a certain degree of deadlock in the economic context, which is usually favorable for stock prices, and we can see that today as well."
Now, the Democratic Party will serve as a check on Trump's policies. Trump has implemented tax cuts that are beneficial to business, as well as pursued tariffs and a war against Iran, all of which have contributed to inflation. In the long term, U.S. Treasury yields have fallen; the benchmark 10-year Treasury yield dropped by 6.0 basis points to 4.891%, and the 30-year Treasury yield fell by 4.3 basis points to 5.280%.
“The pressure to end the war will only increase,” said Peter Bukval, Chief Investment Officer of One Point BFG Wealth Partners. “The American people are clearly dissatisfied with issues such as inflation and oil prices, and perhaps this will only push for an end to the war. We’ll just have to wait and see.”
History shows that markets perform well under a divided government, as there are fewer opportunities for policies and regulations to interfere with business prospects.
Andrew Slimmon of Morgan Stanley Investment Management stated that the market "prefers deadlocks—they don't like one party to have too much power."
The Iran war influenced the results of the mid-term elections. According to CCTV News, on November 4th local time, U.S. President Donald Trump stated that he did not say the Iran war would end immediately after the U.S. mid-term elections. Trump said, "The Iran war will end when I want it to," and the end of the Iran war must be the right one.
Trump admitted that his electoral defeat was largely due to the conflict with Iran, and stated that if he had the chance again, he would make the same decision. Trump said that Iran must not be allowed to possess nuclear weapons.
In terms of economic data, due to a slowdown in new orders, the growth of the U.S. service sector slowed slightly in October, but supply chains remain tight, keeping input costs high. The Institute for Supply Management (ISM) reported that its Non-Manufacturing Purchasing Managers Index (ISM PMI) fell from 54.9 in September to 54.5 last month.
【Large-Cap Performance】
International oil prices tumbled significantly, and the U.S. Vice President Vance attributed the failure to the war. WTI The near-month contract for crude oil fell by 8.29%, to $88.12 per barrel, while the near-month contract for Brent crude oil fell by 8.67%, to $94.62 per barrel.
The precious metals market soared, with the November delivery of COMEX gold futures on the New York Mercantile Exchange rising by 3.39% to $4061.10 per ounce, and COMEX silver futures rising by 5.11% to $52.12 per ounce.
Article Author
Catalyzed by the results of the U.S. mid-term elections, gold returned to the $4,000 mark
Driven by the clear results of the U.S. mid-term elections and market expectations regarding fiscal spending constraints, spot gold saw a sharp rise on the afternoon of November 4th, breaking through the $4,000 per ounce mark.
Wall Street institutions predict how the mid-term election results will affect U.S. stocks and bonds
For Wall Street institutions, how the election results affect the market is the main concern.
Results of the U.S. mid-term elections are in, and the Hang Seng Tech Index has risen for four consecutive days | Market Observation
Uncertainty factors eliminated.
U.S. major stock indices showed mixed movements: the Dow Jones fell nearly 200 points, while the Nasdaq rose 0.83%. NVIDIA's stock price increased by 2.29%. Apple's financial report fell short of expectations, and international oil prices declined.
Transactions related to betting on the construction of artificial intelligence infrastructure may have approached an over-sold range.
Nasdaq opened higher but closed lower; chip stocks were sluggish, with SanDisk AMD falling by over 6%. Heavy news from US-Iran negotiations caused a slump in crude oil prices, while gold and silver prices soared.
Chinese concept stocks performed strongly against the trend.
