Indices

Democrats made sweeping gains in the US midterm elections, winning control of both the House and Senate - what does it mean for the S&P 500 and the AI trade?

Markets had a wild overnight session, with futures initially plunging before staging a sharp reversal and turning decisively higher. Global equity markets also bounced back, alongside gold and silver, while the US dollar has weakened. Oil prices fell on hopes of a deal between the US and Iran, providing another boost to market sentiment. The key question is why have markets rebounded so strongly and, more importantly, whether the recovery can last, given the prior assumption that a blue sweep would have been net negative for stocks?

A Democratic win in the U.S. midterm elections is supporting rebounds in risk assets, including precious metals, currency pairs, cryptocurrencies and U.S. indices. This reaction appears to align with changing sentiment around the war and its inflationary impact.

A potential Democratic sweep of Congress is adding to the AI trade's headaches, with Nasdaq 100 futures breaking below a major technical level. The implications for the dollar could be significant.

The Nasdaq 100 was finding some support at 28,000 after recent sell-off amid concerns about the AI trade. Even with oscillators oversold, the risk to the near-term forecast is tilted to the downside.

The U.S. Dollar Index, commodities, indices and cryptocurrencies are testing key levels as markets navigate the U.S. midterm elections, U.S.–Iran negotiations and key economic releases.

Fed rate-hike bets topping 70% have pressured markets, including precious metals and U.S. indices, toward key support levels. Could these levels signal a turning point ahead of the U.S. midterm elections?

The trading week is coming to an end, and a phase of weakness remains evident across the S&P 500 in the short term. Recent price action reflects this dynamic, with SPX losing more than 2.00% over the last two trading sessions, bringing selling pressure back into focus.

ASX 200 futures approach 9,000 despite a sharp retail selloff. Weakening consumer demand and elevated inflation complicate the outlook ahead of the RBA.

Disappointing results from a couple of major global technology names have put the AI trade back under scrutiny, with Nasdaq 100 futures falling around 1% after giving up the post-FOMC gains seen overnight. For now, our short-term Nasdaq 100 forecast remains more on the cautious side of things than outright bearish. The index remains close to its record highs and continues to find dip buyers. But could that change soon?

The DAX is finding some relief from the recent improvement in risk appetite, with investors becoming less concerned about the sustainability of the AI trade