Market Summary - November 3, 2026
Overview
On November 3, 2026, stock indices experienced a decline, with futures on the Nasdaq 100 and S&P 500 down approximately 0.5%. This downturn coincided with a rise in Brent oil futures, which increased nearly 1.5% to above $105.70 per barrel, following reports of a US military strike on Iran's Qeshm Island.
Market Reactions
Shares of major tech companies, including Apple and Palantir, fell by 2-3% despite both companies reporting quarterly earnings that exceeded analysts' expectations. The broader market showed resilience, with most S&P 500 constituents finishing higher, indicating that the selling pressure was concentrated among the largest stocks.
The Nasdaq 100 entered correction territory, marking a 10% decline from its October peak, while a semiconductor index lost 12% over three sessions, reflecting ongoing challenges in the tech sector.
Geopolitical Developments
Market participants are closely watching the US midterm congressional elections, with initial results expected soon. Additionally, comments from Iranian officials suggest ongoing negotiations between Tehran and Washington, although tensions remain high. Iran has rejected US demands and warned of a strong response to military actions.
Former President Donald Trump expressed optimism regarding potential diplomatic resolutions, linking the recent decline in oil prices to improving negotiations.
Economic Indicators
The Reserve Bank of Australia raised interest rates for the fifth time in 2026, increasing from 4.60% to 4.85%, the highest level since 2008. This decision was not unanimous and is expected to exert additional pressure on Australian households. Following the announcement, the Australian dollar weakened against the US dollar.
In the bond market, longer-dated US Treasuries outperformed, indicating stronger demand for these securities amid expectations of easing inflation and cautious investor sentiment regarding equities.
Corporate Earnings
Apple reported Q4 FY2026 revenue of $114.5 billion, a 12% year-over-year increase, with net income of $30.71 billion. Despite exceeding expectations, the stock saw minimal reaction due to weaker sales in China.
Palantir Technologies reported a 96% year-over-year revenue increase to $2.31 billion in Q3 2026, surpassing consensus estimates. However, shares initially fell by 2.5%, suggesting that strong growth had already been priced into the stock.
Market Outlook
Brent crude oil prices found support at the 50-period exponential moving average, with potential for a rebound above $110 per barrel. Meanwhile, the AUD/USD currency pair has shown bearish trends, slipping below key support levels.