Overview:
Democrats secured control of both chambers of Congress in Tuesday's midterm elections, eliminating political uncertainty and spurring a broad rally across Wall Street and Asian equity markets. Oil prices declined for a fourth consecutive session on expectations of reduced military escalation in Iran. Gold advanced on dollar weakness, while cryptocurrencies surged on risk appetite. Separately, Chinese fast-fashion retailer Shein announced a major logistics hub expansion in Poland in response to new European tariffs.
Details:
The Dow Jones added approximately 1,500 points on Wednesday, buoyed by Democrat gains that quelled market jitters about election outcomes. Gold spot prices climbed 0.6 percent to 4,082.76 dollars per ounce by 00:36 GMT Thursday, following a 3.4 percent jump the previous session, supported by a weaker dollar. December U.S. gold futures rose 0.5 percent to 4,092.90 dollars.
Oil retreated sharply as investors reassessed geopolitical risk. Brent crude fell 1.03 percent to 93.65 dollars per barrel, while West Texas Intermediate declined 1.29 percent to 86.98 dollars, marking four consecutive days of losses and the lowest close since August 31. Both contracts had dropped over 8 percent in the prior session.
Bitcoin surged 6 percent to 80,660.59 dollars, Ethereum jumped 8.5 percent to 2,428.15 dollars, and Solana rose 6.25 percent to 96.40 dollars, as reduced political uncertainty sparked demand for riskier assets.
Outlook:
Investors await the nonfarm payroll report this week for signals on U.S. Federal Reserve interest rate policy. Markets are monitoring whether Democrat control will slow artificial intelligence infrastructure expansion and trigger stricter tech regulation.