Markets welcomed the Democratic sweep of Congress with an initial relief rally, as lower yields, a softer dollar, and falling oil prices supported risk appetite. Attention has since shifted to sector-specific risks, with AI infrastructure and semiconductor stocks selling off sharply on concerns over tighter oversight and slower data-center expansion. With U.S. inflation data and earnings ahead, investors will watch whether cheaper energy eases inflation pressures while elevated valuations and policy uncertainty keep volatility elevated.
Month: November 2026
Weekly Newsletter – 30th October, 2026
Markets confronted an AI-spending reality check as Alphabet, Amazon, and Intel suffered sharp selloffs triggered by negative free cash flow, revenue misses and heavy capex plans despite delivering strong cloud or AI growth. The Fed held rates steady amid stronger-than-expected growth and firm inflation, while elevated oil prices and geopolitical risks kept caution alive. Attention now turns to US midterms, the October jobs report, and further central-bank decisions.