The Prime Daily: 05 November 2026

United States stock indices surged dramatically as election uncertainty dissipated following a clear Democratic sweep of both congressional chambers. The Dow Jones Industrial Average marked its strongest post-midterm performance in over four decades, rising over 3%, while the S&P 500 and Nasdaq Composite both logged gains above 1.4%. Investors welcomed the rapid resolution of the races, betting that political gridlock would contain sweeping changes to fiscal policy and corporate earnings.

Global energy markets experienced a sharp downturn, with Brent crude prices tumbling nearly 10% to settle below the $100 per barrel mark. The extended decline in oil prices was driven by the shifting balance of congressional power and hopes for de-escalation in the ongoing conflict involving Iran. The drop in energy costs acted as a tailwind for broader equities and bonds, offsetting localised macro fears.

U.S. government debt yields retreated across the curve, with the 10-year Treasury yield sliding to approximately 4.89%. Concurrently, the U.S. dollar posted its worst daily performance in two months as political expectations shifted. Investors rotated capital into fixed income, factoring in the possibility that a divided government would curb extensive federal spending plans and alleviate long-term inflationary pressures.

Energy was the worst sector; Lockheed Martin and Chevron led the selloff.

Voters in 10 states backed data center bans and limits, the Texas Senate result added to data center build-out worries. Nvidia, Broadcom and Applied Materials fell, and SOXX and SMH dropped about 3%. Microsoft rose 6.7%, Amazon 6%, Apple 5.4% and Alphabet 3.7%, as slower AI buildout eased capex worries and made existing data center capacity more valuable.

The Indian rupee strengthened for a fourth straight day, gaining 10 paise to close at 94.64. A softer dollar index and lower crude prices after the US midterm election results supported the currency, while declining bond yields and a risk-on mood added further momentum.

Nifty extended its winning streak to a fifth consecutive session, gaining 149 points to close at 23,960, its highest level in two months.  The index has now recovered nearly 1,800 points from its swing low of 22,179. A sustained move above 24,000 could open the door for the next resistance zone near 24,375, while immediate support has shifted higher to 23,700.