WS #16853

The dominant market narrative has shifted sharply from geopolitical risk-off to a 'Democrat Sweep' rally, as US midterm results delivered a divided Congress that removes the threat of unilateral executive action. Equity futures surged, with the Dow jumping over 800 points, while oil prices crashed below $93/barrel (-12% over four days) as energy supply fears dissipated. This macro pivot is reinforcing a rotation into domestic cyclicals, with homebuilders and regional banks leading gains, while the dollar weakened and gold climbed toward $4,050 on the back of capital flight from the USD. In the technology sector, the rally is broadening beyond the mega-caps. AMD is seeing renewed bullishness as Lisa Su projects over 80% growth next year, and a rare historical event saw AMD Radeon sales surpass NVIDIA on Amazon US. Meanwhile, Meta secured record demand for its $9B euro bond debut, signaling robust institutional appetite for high-quality tech debt. However, the AI infrastructure boom faces headwinds as Oracle cancels a $7B chip lease deal under US pressure, and local voters reject data centers, highlighting a growing regulatory and political friction on AI build-outs. Corporate developments are mixed but generally constructive. Uber reported strong Q3 bookings growth (+20% YoY), and Astera Labs beat outlooks despite valuation concerns. In defense, the escalation in the Middle East continues to drive kinetic activity, with Iran destroying a US drone and Lockheed highlighting F-35 budget task orders, maintaining a floor of demand for the defense sector even as the broader market rallies on political stability.