Daily Summary: Chips Lift Wall Street on Election Day, Oil Drops Amid Progress in Negotiations

Date: November 3, 2026

Market Overview

On the day of the highly anticipated midterm elections in the United States, investor sentiment is relatively positive as they await initial exit poll results. After a period of significant sell-offs, particularly in the semiconductor sector, there is a notable rebound. The Nasdaq 100 index is up by 1.1%, buoyed by the recovery in semiconductor stocks.

Sector Performance

Semiconductor Sector

The semiconductor sector has seen a rally, with On Semiconductor gaining approximately 3% following the release of its Q3 earnings report, which highlighted a remarkable 175% year-on-year increase in sales to data centers.

Technology Stocks

Conversely, major technology companies like Apple and Palantir experienced declines of 2% and 1.5%, respectively. Despite Apple exceeding expectations in its quarterly report, concerns about tightening margins and weaker sales in China have dampened investor enthusiasm. Palantir also reported strong revenue growth of 96% year-on-year but indicated a slowdown in sales growth for the upcoming quarter.

Indices and Elections

The S&P 500 index has historically not recorded a loss in the 120 trading days following the close of polling stations in any of the last 19 election cycles since 1950. However, it is important to note that when there is a shift in congressional power, the first 40 trading days post-election have often been volatile.

Geopolitical Developments

In non-technology news, tensions surrounding Iran have influenced market dynamics. The U.S. conducted targeted strikes against objectives on Qeshm Island in the Strait of Hormuz, which President Trump characterized as a "minor attack." Concurrently, Qatari mediators have proposed a new agreement to both sides, with indications of "greater negotiating flexibility" from Iranian officials. However, Tehran continues to reject U.S. terms regarding its nuclear program, insisting on the lifting of port blockades and the unfreezing of assets.

Commodity Prices

Oil

These geopolitical developments have contributed to a decline in crude oil prices, with Brent trading below USD 103 and WTI near USD 96.

Gold

Gold prices have also seen a modest decline of around 0.5%, trading at approximately USD 3,930 per troy ounce. This drop can be attributed to robust JOLTS data indicating a healthy U.S. labor market, which has led to an increase in 10-year Treasury yields to 4.95%. Job openings rose to 7.52 million in September, surpassing expectations.

Conclusion

As the day progresses, market participants are keenly observing the election results and their potential implications for the economy and financial markets. A special discussion on the political and economic links will take place later in the evening.