Global Markets Today, November 5, 2026: Wall Street Rallies, Oil Slumps Nearly 9% After US Midterm Results; Indian Markets Seen Opening Higher 

Mumbai, November 5: Wall Street rallied on Wednesday as a sweeping victory for Democrats in the US midterm elections lifted investor sentiment, while a sharp decline in crude oil prices raised hopes of easing inflationary pressures and a possible de-escalation of the conflict in the Middle East. Asian equities were weak after Wall Street’s strong overnight gains. 

Asian Markets 

Asian markets were mixed in early trade, with Japan’s Nikkei 225 falling 0.4% and South Korea’s Kospi plunging 3.2%, while Taiwan’s benchmark index Taiex declined 1.6%. Technology and semiconductor stocks bore the brunt of selling pressure as investors reassessed the outlook for data centre expansion following the Democrats’ electoral gains in key US states. 

The weakness in Asian technology shares came despite a broader improvement in global risk appetite. Investors are concerned that the Democratic victory could lead to tighter scrutiny of data centre construction and AI infrastructure spending, potentially slowing demand for chips and related equipment. European shares, meanwhile, climbed to a two-month high. 

US Markets 

On Wall Street, equities rallied sharply on Wednesday after Democrats seized control of both the Senate and the House of Representatives, raising expectations of greater political gridlock in Washington and potentially limiting the Trump administration’s policy agenda. 

The Dow Jones Industrial Average surged 1,569.40 points, or 3%, to close at 53,356.12. The S&P 500 gained 119.70 points, or 1.6%, to settle at 7,688.62, while the Nasdaq Composite advanced 364.50 points, or 1.4%, to 25,736.51. 

Consumer discretionary stocks led the broader S&P 500 sectoral rally, gaining 4.3%, while energy stocks declined 4.8%. Microsoft, Amazon and Alphabet were among the major technology gainers, even as data centre operators and semiconductor stocks faced selling pressure. 

Crude Oil Prices 

Crude oil prices remained under pressure, with Brent futures falling nearly 9% overnight to below $100 per barrel, amid expectations that the Democrats’ victory could increase pressure on US President Donald Trump to bring the conflict with Iran to an end. 

Brent was trading at $94 per barrel in Asian trade, extending its decline to nearly 20% this week. If sustained through Friday, the weekly fall would be the steepest in more than six years. Lower oil prices also helped push bond yields down and weakened the US dollar, providing additional support to global equities. 

Indian Markets Outlook 

The sharp correction in crude oil prices, coupled with strong overnight gains on Wall Street, is likely to provide a positive trigger for domestic equities. The decline in energy prices is particularly significant for India, a major oil importer, as it could ease concerns over imported inflation, the current account deficit and corporate input costs. Investors will also track foreign institutional flows and domestic earnings for further direction after the recent rally in benchmark indices. 

Indian markets are therefore expected to open higher on Thursday, with the sharp decline in crude prices and improving global risk appetite likely to underpin sentiment. Weakness in Asian technology stocks could boost domestic IT shares. 

Source

• Exchanges