US stocks plunged as investors weighed the Democrats’ election victory and the prospect of tougher regulation. Treasury yields fell sharply, but the dollar edged higher. Renewed Middle East hostilities lifted oil, while gold also gained. US Non-Farm Payrolls lead today’s agenda, alongside Canadian employment and Ivey PMI, with geopolitical headlines still in focus.
📊 Equities
US stock markets took a massive hit in trading yesterday as investors continued to digest the Democrats’ mid-term election victory and the prospect of tougher government regulation. The tech sector bore the brunt of the selling, with the Nasdaq plunging 5.52% to 24,315, while the S&P 500 fell 4.36% to 7,353 and the Dow dropped 3.44% to 51,523 as risk sentiment deteriorated sharply.
🛢️ Oil
Oil prices bounced strongly as fresh hostilities in the Middle East raised concerns that a peace deal could still be some way off. Brent crude jumped 4.66% to $99.03, moving back towards the $100 mark, while WTI gained 3.35% to $91.07.
🥇 Gold
Gold pushed higher in another choppy session, gaining 0.57% to $4,088.39, although the stronger dollar kept gains relatively contained.
💵 FX & Bonds
US Treasury yields dropped significantly as investors moved into bonds. The 2-year yield fell 12.2 basis points to 4.459%, while the 10-year yield declined 5.3 basis points to 4.835%. The dollar managed to buck the trend, edging higher against the major currencies despite the sharp move lower in yields. The Dollar Index gained 0.10% to 101.59.
| Market | Change | Close |
|---|---|---|
| Dow | -3.44% | 51,523 |
| S&P 500 | -4.36% | 7,353 |
| Nasdaq | -5.52% | 24,315 |
| USD | +0.10% | 101.59 |
| US Treasury – 2 Year | -12.2 bps | 4.459% |
| US Treasury – 10 Year | -5.3 bps | 4.835% |
| Oil – Brent | +4.66% | $99.03 |
| Oil – WTI | +3.35% | $91.07 |
| Gold | +0.57% | $4,088.39 |
📌 Today’s Focus (AEDT)
Traders are now bracing for another potentially explosive session to close out the week, with the key US Non-Farm Payrolls numbers set to dominate the New York session. The employment data could quickly supersede the election-driven moves of the last two days, particularly if the numbers shift expectations for the Fed’s December meeting. Geopolitical headlines will also remain firmly in focus, with volatility likely to stay elevated right through to the closing bell. Canadian employment figures and Ivey PMI are also on the US session calendar.
🔹 12.30 am – US – Non-Farm Employment Change Data
🔹 12.30 am – US – Unemployment Rate
🔹 12.30 am – US – Average Hourly Earnings Data
🔹 12.30 am – Canada – Employment Change Data
🔹 12.30 am – Canada – Unemployment Rate
🔹 2.00 am – Canada – Ivey PMI Data
