Analysis

Japanese and South Korean stock markets diverged, as the Nikkei tracked gains in US equities to open higher, while the KOSPI tumbled 2.4%. Kioxia plummeted 8%, and SK Hynix and SoftBank dropped 6%.

Qualcomm (QCOM) reported its fourth-quarter FY2026 financial results on November 4. Quarterly revenue and adjusted earnings per share slightly exceeded market expectations, but a decline in the mobile business continued to weigh on overall revenue and profitability. The automotive segment achieved record quarterly revenue, while the company reaffirmed its target of $5 billion in data center revenue for FY2027.

On Wednesday, November 4, Eastern Time, US stocks surged. Political uncertainty facing the market eased as the Democratic Party won control of both houses of Congress and Donald Trump accepted the election results. A sharp drop in oil prices further boosted investor sentiment, with tech stocks leading the gains, while AI infrastructure-related stocks came under pressure. At the close, the Dow Jones Industrial Average rose 3.03% to 53,356.12; the Nasdaq Composite Index climbed 1.44% to 25,736.51; and the S&P 500 Index advanced 1.58% to 7,688.62.

On Wednesday, November 4, Eastern Time, crude oil prices dropped sharply, with Brent crude (UKOIL) approaching $93 after falling over 10% intraday, while WTI crude (USOIL) breached the $87 mark with an intraday decline of more than 9%. Investors are reassessing the U.S. midterm election results and the impact of shifts in Congressional power on the Trump administration's Iran policy.

CoreWeave (CRWV) shares fell about 10% again, hitting a new record low since early May 2025, while several of the company's bonds tumbled in tandem. The victory of Democratic candidates supporting a slowdown in data center construction in the Texas gubernatorial election and other races has prompted investors to reassess the risks of the company's data center expansion plans.

On November 4 (ET), hyperscale cloud providers surged across the board, driving the Nasdaq Composite Index up by more than 2% at one point. Shares of Microsoft (MSFT), Amazon (AMZN), Google (GOOGL), and Meta (META) all rebounded sharply. Markets had initially feared tighter AI regulation after the Democrats won control of both houses of Congress, but the swift clarity of the election results and a pullback in US Treasury yields provided breathing room for tech stocks that had previously suffered sell-offs.

TradingKey - As of press time on November 4, Eastern Time, SpaceX (SPCX) fell over 7% in pre-market trading, currently trading at $130.64.

TradingKey - Following the release of the U.S. midterm election results, the Democratic Party won control of both the Senate and the House of Representatives, ending the Republican Party's simultaneous control of the White House and Congress. Amid market concerns that the new Congress may tighten regulatory scrutiny on artificial intelligence, autonomous driving, and Elon Musk's businesses, Tesla (TSLA) fell over 5% in pre-market trading on Wednesday.

TradingKey - Dell’s enterprise AI push adds CrowdStrike security, but backlog conversion and cash flow remain key. DELL faces $423.36 resistance before earnings.

TradingKey - Arm Holdings (ARM) will report its second-quarter fiscal 2027 financial results after the US market close on November 4 and hold an earnings conference call at 5:00 p.m. Eastern Time. Ahead of the earnings release, although Arm's pre-market stock price rebounded 3% to around $209, the overall trend remains weak. The stock has pulled back more than 50% from its peak of approximately $440 in June and is once again approaching its lowest levels since late April.

TradingKey - On November 4, Eastern Time, the three major US stock index futures rebounded after falling overnight.

TradingKey - AMD’s $17 billion revenue outlook lifts shares into a key resistance zone. Explore Helios delivery risks, cash flow and the $511.74 recovery test.

TradingKey - On November 4, as the US midterm election results became clearer, the Democratic Party won control of both the Senate and the House of Representatives, creating a divided government with the Trump administration. Affected by this, Trump Media & Technology Group (DJT) fell over 8% at one point in pre-market trading.

TradingKey - Oracle’s reported Tencent cancellation tests its $20 billion funding plan. ORCL faces $131.56 resistance as investors assess cash flow and dilution.

TradingKey - GE Vernova’s $9 billion Trench deal strengthens its grid strategy, but GEV needs a close above $949.31 to confirm recovery. Key risks and levels.

TradingKey - As of press time on November 4, Eastern Time, Oracle (ORCL) was down 1.36% in pre-market trading, standing at $124.47. According to the Financial Times, Oracle has canceled a five-year AI chip lease agreement with Tencent, valued at approximately $7 billion.

TradingKey - The results of the 2026 US midterm elections have reshaped the balance of power in Congress. With the Democratic Party winning control of both the House of Representatives and the Senate, the Trump administration's policy leeway over the next two years will be further constrained. The new Congress will take office in January 2027, and businesses under Elon Musk may face heightened scrutiny.

TradingKey - As the results of the 2026 US midterm elections continue to roll in, the Democratic Party has won control of the Senate and is close to securing a majority in the House of Representatives. While the shift in congressional power may strengthen checks and balances on the Trump administration, election-related uncertainty for financial markets is receding, and investors' focus will return to corporate earnings, interest rates, energy prices, and returns on artificial intelligence investments.

As Democrats sweep the US midterm elections, US stock futures plummeted in response. Market panic mounts over AI data centers facing severe regulatory scrutiny, triggering expectations of a bloodbath in AI stocks.

TradingKey - On November 4, gold prices (XAUUSD) rose sharply during the Asian trading session. As the Democratic Party won the U.S. midterm elections, the US Dollar Index and US Treasury yields weakened in tandem, pushing gold back above $4,000 to reach an intraday high near $4,029. Based on today's low of $3,919.85, the intraday rebound was close to $110.