World Bank sees gold holding above $4,000 through 2028, but warns silver faces steeper correction 

Why the silver price case now rests on investors

TORONTO, Nov 5 (Reuters) - The Canadian dollar weakened against its US counterpart on Thursday, but the move was limited as investors awaited domestic jobs ​data and looked for clues on the direction of US ‌policy after the midterm elections.The loonie was trading 0.1% lower at 1.3985 per US dollar, or 71.51 US cents, extending its pullback from a seven-week high on Wednesday ​at 1.3927. A wave of anger over US President Donald Trump's policies, ​particularly the US-Iran war's role in pushing the cost of ⁠living higher, helped Democrats take control of both chambers of Congress."There are two ​paths Trump can go down - he can double down on unpopular trade ​wars or he can listen to the electorate and change course," said Adam Button, chief currency analyst at investingLive."At some point we get back to focusing on the economy ​and inflation," Button said.On Wednesday, Dominic LeBlanc, Canada's minister in charge of ​US trade ties, said the US midterm results would not change Ottawa's stance toward ‌trade ⁠talks with the US, adding he would speak soon with his American counterparts.Canada's employment report for October, due on Friday, is expected to show the economy adding 13,600 jobs and the unemployment rate holding steady at 6.5%.US ​crude oil futures were ​trading 2.7% higher ⁠at $90.47 a barrel, clawing back some of the previous day's sharp decline. Oil is one of Canada's major ​exports.Canadian bond yields eased across the curve, tracking moves ​in US ⁠Treasuries. The 10-year yield was down 2.8 basis points at 3.672%, after earlier touching its lowest level since August 27 at 3.660%.Economists are urging Canadian Prime ⁠Minister ​Mark Carney's government to restrain spending in its second ​budget later on Thursday, saying that despite windfall oil revenue, spending commitments could lead to ​bigger deficits in the coming years.Reporting by Fergal Smith; Editing by Chris Reese

Canadian dollar edges lower as investors await US policy updates

WASHINGTON, Nov 5 (Reuters) - The Republican Party's staggering losses at the ballot box this week have left President Donald Trump diminished in Washington and facing tougher legislative oversight and scrutiny of his agenda. But on foreign policy, he could remain unbowed. Even as Democratic lawmakers seek to rein in ​the Republican president when they take control of Congress, Trump will retain broad latitude to pursue his objectives on the world stage, from Iran and Israel to Ukraine and China, during his final two years ‌in office. The central question, analysts say, is whether Trump will feel chastened by his party’s poor showing in Tuesday’s midterm elections or emboldened to take more dramatic steps to craft his legacy in US relations with friends and foes alike.Most urgent is the intractable war against Iran, which Trump acknowledged on Wednesday contributed to his party losing both chambers of Congress. He insisted, though, he had no regrets about attacking the Islamic Republic and it was essential to stopTehran from acquiring a nuclear weapon, which it says it has never sought.The midterms outcome illustrated voter backlash after eight months of ​conflict that have driven US gasoline prices up and his approval ratings down. Democrats had accused Republicans of ceding Congress’ war-making powers and giving Trump a free hand internationally, not just against Iran but with his approach to Russia’s war ​in Ukraine, his tariffs campaign, his capture of Venezuela’s president, and deadly boat strikes off Latin America.Senate Democratic leader Chuck Schumer told reporters on Wednesday his party's mandate is to put ⁠a check on “Trump's chaos at home and abroad” and end the Iran war.That is easier said than done, given the extensive leeway with foreign policy and military operations that presidents have long possessed.“A Democratic Congress has the ability to stop Trump's domestic legislative ​agenda, but it doesn't have much ability to stop a president from exercising his powers as commander-in-chief,” said William Wechsler, senior director of Middle East programs at the Atlantic Council.Democrats’ main tools could be investigations, Trump nominees' confirmation hearings and funding authority to curb ​his foreign operations, but analysts say their leverage will be limited.While not responding directly to Reuters' questions about the election's implications, White House spokeswoman Anna Kelly said: “President Trump has effectively restored American strength on the global stage ... The president will continue to work with anyone to put America first and improve the livelihoods of families across the country, and his foreign policy decisions have never been motivated by politics."FACING LAME-DUCK STATUSPresidents entering their lame-duck phase, when barred from running again and seeing influence waning at home, have often focused on global affairs – and many analysts expect something similar from ​Trump.But some experts see the risk of Trump’s impulsiveness leading to further instability in the Middle East or sparking conflict elsewhere, possibly targeting Cuba, a Communist-ruled island he has placed under an oil blockade and repeatedly threatened.“If triggered and cornered," said Laura Blumenfeld, a ​foreign policy analyst at Johns Hopkins University, "Trump may elect to flex his presidential powers through unilateral use of force abroad.”With Iran, Trump faces the choice of launching a new round of airstrikes, seeking a negotiated exit or maintaining the status quo - a tense stalemate keeping global energy prices ‌high and Gulf ⁠neighbors on edge.While Iranian leaders have gloated over what they see as Trump’s humiliation at home, people in Washington familiar with the deliberations say he could still take military action. One source said Trump had nothing to lose politically now.But Sina Toossi, an Iran specialist at the Center for International Policy in Washington, said: “Escalation offers no clear path to victory and risks compounding the very economic grievances that drove voters to punish Republicans.”And any return to major hostilities could also stir further dissent within Trump’s MAGA movement, where a growing number of followers are upset about him breaking his 2024 campaign promise to avoid foreign interventions.Vice President JD Vance distanced himself from Trump’s Iran policy on Wednesday, questioning whether it was worth the cost and blaming it for Republicans' electoral wipeout.DEMOCRATS TARGET UKRAINE, ISRAEL ​POLICIESTaking control of Congress in January, Democrats will also seek ​to revive support for Ukraine, under pressure from Trump as ⁠it fights a 4-1/2-year-old Russian invasion.Democrats hope to draw more Republicans into efforts to approve new aid to Ukraine and build a majority that could withstand a veto by Trump, who has halted direct assistance.Trump’s lifting of sanctions on Russian diesel exports prompted criticism, including from some Republicans, for reinforcing the impression that he was increasingly siding with Moscow.At the same time, Democrats want to ​use their newfound power to start repairing relations with European allies as well as Canada, though analysts say lawmakers alone won't be able to regain trust with governments rattled by ​Trump’s tariffs and pressure tactics.Trump is ⁠also expected to face a Congress less supportive of Israel than ever before, while some Republicans are also questioning their party’s traditional backing for Washington’s closest Middle East ally.Many winning Democratic candidates were progressives who campaigned against military aid to Israel and the US-Israeli war on Iran, and they plan to push for an end to billions of dollars in annual assistance.Trump himself announced on Election Day that such aid would be stopped at the end of the year - though it was not clear he has the legal authority.Israel’s military campaign in Gaza, Prime ⁠Minister Benjamin Netanyahu’s embrace ​of Trump and the Republican Party and a wave of settler violence in the occupied West Bank had already eroded decades of bipartisan support.Despite that, ​Trump's veto power could limit the Democrats' ability to force major policy changes.In the end, most analysts see Trump’s foreign policy for the remainder of his second term driven by his vision of his place in history, which so far has been based heavily on the exercise of military power abroad.“He’s concerned about ​his legacy of having left an imprint on the world, not necessarily a positive imprint,” Ross Harrison, a senior fellow at the Middle East Institute, said on a webcast by the Washington think tank.Reporting by Matt Spetalnick; Editing by Don Durfee and Daniel Wallis

Midterms upended Congress but Trump still commands foreign policy

CPM market commentary: Gold and silver investments

Keep the bullion, cut the miners as tech stocks tumble, says Ted Oakley

CPM Trade Signal -  November 5, 2026

Nov 5 (Reuters) - US stocks dropped sharply on Thursday, with the Nasdaq ​poised to confirm correction territory as steep losses in chip and data center-related stocks weighed a day after the ‌Democrats' sweeping midterm election victory powered a broad-based rally.Qualcomm (QCOM.O), slid 9% after the chipmaker fell short of Wall Street estimates for fourth-quarter smartphone chip sales on sluggish demand and declining Apple-related (AAPL.O), revenue.The broader semiconductor index (.SOX), extended declines and was down 7.1%, with losses in Nvidia (NVDA.O), Advanced Micro Devices (AMD.O), Intel (INTC.O), and Marvell Technology (MRVL.O), weighing heavily.Chip ​stocks, along with companies linked to the AI infrastructure buildout, slipped further following the Democrats' election victory including in some key data-center states, where public ​opposition to the industry's rapid expansion has been growing."There is now a chance that the two years of ⁠extra push from the Trump government for AI buildout will somehow be scaled back because there has been a lot about the ​AI trade that has been ignored by the current administration," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank."We suspect there is going to ​be some scrutiny on this aggressive AI buildout."Data center operators IREN (IREN.O), Hut 8 (HUT.O), and Applied Digital (APLD.O), fell between 6% and 11%. Neoclouds CoreWeave (CRWV.O), and Nebius Group (NBIS.O), shed 9.3% and 13.4%.Utilities and equipment suppliers exposed to the data center boom, including GE Vernova (GEV.N), and Constellation Energy (CEG.O), were also trading lower. AI server maker Dell (DELL.N), dropped 10.5%.Most large-cap ​tech stocks also lost ground after Wednesday's rally. Meta Platforms (META.O), slid 3.4%, while Amazon.com (AMZN.O), and Alphabet (GOOGL.O), were slightly lower.Elon Musk-led Tesla (TSLA.O), tumbled 9.5% and SpaceX (SPCX.O), ​eased 6.7%, extending losses. Musk spent nearly half a billion dollars backing Republican candidates, including efforts to keep them in control in Texas, the home state of both companies.At ‌9:57 ⁠a.m. ET, the Dow Jones Industrial Average (.DJI), fell 351.87 points, or 0.66%, to 53,004.25, the S&amp;P 500 (.SPX), lost 127.74 points, or 1.66%, to 7,560.88 and the Nasdaq Composite (.IXIC), lost 795.08 points, or 3.09%, to 24,941.44.Five of 11 major S&amp;P 500 sectors were in negative territory, with the tech sector (.SPLRCT), and consumer discretionary (.SPLRCD), leading losses, while energy (.SPNY), gained the most.The benchmark clocked its biggest one-day percentage gain in three months on Wednesday as the easing ​political uncertainty boosted risk appetite.Some ​analysts said that a divided government ⁠in Washington could lead to fewer sharp legislative changes and may even make it harder to agree on fiscal spending, given the US's deteriorating fiscal picture. A sharp drop in oil prices had also aided sentiment. Central ​banks around the world have acknowledged inflation remains elevated as crude oil prices surged due to ​the Middle East ⁠conflict.Cleveland Federal Reserve President Beth Hammack in comments on Thursday favored a gradual rate-hike path to lower inflation. Focus will be on the US October non-farm payrolls data due Friday, as traders currently expect the Fed to hike rates next month following the September rate hike.Among other stocks, Snapchat owner Snap (SNAP.N), ⁠slid 12% ​after missing third-quarter revenue estimates, while AppLovin (APP.O), jumped 32% after the marketing platform beat third-quarter profit estimates.Declining issues ​outnumbered advancers by a 1.36-to-1 ratio on the NYSE and by a 2.17-to-1 ratio on the Nasdaq.The S&amp;P 500 posted 69 new 52-week highs and 3 new lows, while ​the Nasdaq Composite recorded 132 new highs and 247 new lows.Reporting by Shashwat Chauhan and Utkarsh Hathi in Bengaluru; Editing by Maju Samuel

Wall St slumps as sharp tech losses put Nasdaq on course for correction

Gold at $4,000 ‘looks very attractive’ to a mine builder who started at $140, Robert Quartermain

Nov 5 (Reuters) - The Nasdaq slid more than 10% from its ​record close on Thursday, on track to confirm a correction as ‌worries over massive AI spending and heightened scrutiny of data-center expansion rattled tech stocks.The tech-heavy Nasdaq Composite Index (.IXIC), fell nearly 4% to 24,712.60, more than 10% below its record closing ​high of 27,599.89 reached on October 6. Thursday's slide erased the previous session's ​gains after Democrats swept both houses of Congress, as investors ⁠weighed the prospect of greater scrutiny of further AI infrastructure buildout. "When you go ​from full unified control under one party to full unified control under another ​party that can also represent quite a bit of uncertainty, discontinuity and abrupt change to policy," said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute."When it looked like ​the Democrats were going to take significant majorities in both the House ​and the Senate, we thought that at the very least, it would lead to markets taking ‌a ⁠little bit of a pause."A decline of 10% from the most recent record closing high is widely considered a correction. It would mark the Nasdaq's second correction this year. Sentiment toward AI-linked stocks has deteriorated in recent weeks, with the ​Nasdaq shedding more than $2.5 ​trillion in market ⁠value in October. Several big tech companies are tapping debt markets to help finance billions of dollars in planned investments in ​data centers, chips and other infrastructure required to support AI ​development.Investors have ⁠increasingly questioned how quickly those investments will translate into profits, particularly as persistent geopolitical tensions in the Middle East and fears of prolonged inflation have kept borrowing ⁠costs elevated.Earnings ​from hyperscalers Alphabet (GOOGL.O), and Meta (META.O), last month failed ​to reassure investors about the returns on AI spending, contributing to a broader selloff in AI-linked ​stocks.Reporting by Utkarsh Hathi and Johann M Cherian in Bengaluru; Editing by Anil D'Silva

Nasdaq set to confirm correction as AI spending worries mount

NEW YORK, Nov 5 (Reuters) - US regulators contacted banks to check whether their systems had any ‌vulnerabilities after last week's $6.3 billion hack of Binance, alert to the risks that a hack in crypto markets could affect traditional finance at a time that links have tightened.Supervisors from the Federal Reserve and the Office of the Comptroller of ​the Currency started reaching out to banks on Monday morning, asking about any unusual activity ​or disruption in their services, according to several sources familiar with the matter. One source ⁠at a bank that regulators had contacted said there were no disruptions in its services. The source said ​bank employees prepared a list of talking points to discuss with customers, but they have since received ​few inquiries.Banks have been studying the Binance hack, believed to be the largest financial heist in history, and are also doing diagnostics on their systems to ensure they are prepared to defend against a similar attack, according to two separate people familiar with the ​efforts.Within hours of the attack, a cybersecurity team at one of the largest US banks reached out to counterparts ​at Binance, according to one of the sources. That team is working on an internal report that will lead ‌to a ⁠review of the bank’s systems, and possibly cybersecurity updates. It was not yet clear whether the bank would be vulnerable to similar tactics used by the Binance hackers, according to the source. Illustration shows Binance logo and hacker codeBinance logo and hacker code are seen in this illustration taken October 30, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tabBinance said it was unaware of conversations between bankers and regulators, and whether the hack had an impact on US ​banks. "We are in close ​contact with regulators all ⁠over the world, keeping them up to date on this security breach," a Binance spokesperson said.The Fed and OCC declined comment.One of the people familiar with ​the matter said the big concern is that artificial intelligence models have been ​evolving quickly, ⁠making it a challenge for banks to keep up with hackers. He said banks are devoting a lot of resources to reviews and patches of cybersecurity codes.President Donald Trump has been a cheerleader for cryptocurrencies, and US ⁠bank ​regulators have smoothed the way for banks to get more active in ​crypto markets. For instance, the Federal Reserve revoked a 2022 rule that advised banks to get permission from regulators before launching ​any crypto-related activities.Reporting by Stephen Gandel, Nupur Anand and Tatiana Bautzer; editing by Megan Davies and David Gregorio

Binance hack prompted US regulators to check in on bank systems, sources say

Bitcoin squeezes higher as Ethereum momentum heats up

NEW YORK, Nov 5 (Reuters) - After Democrats seized control of the US Congress, investors are focused on the risk of standoffs over the government's borrowing ​limit, with the potential for political brinkmanship to unsettle markets.Democrats wrested the Senate and House of Representatives away from President Donald Trump's ‌Republican Party in Tuesday's midterm elections, prompting investors to consider the impact on the nation's finances and the next round of negotiations over the government's debt limit. Previous fights over the debt ceiling have led to down-to-the-wire showdowns as lawmakers use the cap on how much the US government can borrow as leverage over fiscal policy.Fiscal worries have loomed over markets this ​year, weakening confidence in US Treasuries, as the national debt topped $40 trillion. In the wake of the election, analysts offered scenarios that ​could either exacerbate deficits or help constrain them.DEFAULT UNLIKELY, BUT MARKETS MAY WORRYThe government is unlikely to hit the ⁠debt ceiling until late next year, but&nbsp;Democrats could wield the so-called X-date in budget or other negotiations with Republicans. Failure to raise the ​debt ceiling would threaten the ability of the Treasury to pay the government's debts. "The Democrats are going to have some decent bargaining chips as it relates ​to the debt ceiling," said Michael Reynolds, vice president of investment strategy at Glenmede, a wealth-management firm."A default scenario from our view is very unlikely," Reynolds said. "But the further you go down that brinksmanship path, the more worried markets are going to be about that eventuality." In the near term, analysts are zeroing in on December 11, the ​date by which Congress needs to reach agreement to fund the federal government. Analysts said Republicans could use that deadline as an opportunity to raise ​the debt ceiling before the Democratic-controlled Congress takes office in early January, but some were skeptical that would happen."The administration would probably like to get the debt ceiling ‌raised in ⁠a lame-duck session, but I doubt that we'll see that now, given the scale of the Democrat victory," said Dustin Reid, chief fixed-income strategist at investment-management firm Mackenzie Financial in Toronto.PROTRACTED STANDOFF POSSIBLEIf Congress fails to address the debt ceiling issue before year-end, Vail Hartman, US rates strategist at Canadian investment bank BMO, said in a note, "Financial markets could face a protracted debt ceiling standoff in 2027 – raising the risk of sovereign debt downgrades, price distortions ​around the projected X-date, and increased ​volatility in cash and repo markets ⁠should Treasury draw down its General Account to deploy extraordinary measures."UBS analysts said in a note that as part of debt-ceiling negotiations Democrats could seek changes to Medicaid, housing incentives and other domestic priorities in exchange for their ​votes, with an agreement that might be stimulative and leave deficits wider than the baseline estimates of the ​nonpartisan Congressional Budget ⁠Office.Some analysts said Democrats could put a check on Trump's spending or tax-cut aims."Divided government will make major fiscal legislation more difficult, particularly spending initiatives that lack bipartisan support," said Shawn Snyder, economic strategist at Potomac Fund Management.In a report following the election, ratings agency Moody's said the broader US fiscal trajectory was ⁠unlikely to ​change materially, because the principal drivers of rising debt, including mandatory spending, demographic pressures and ​interest costs, remained in place.Analysts at the BlackRock Investment Institute agreed that political gridlock was unlikely to alter the fiscal trajectory, but said in a note that "divided government raises the risk ​of funding standoffs and government shutdowns."Reporting by Lewis Krauskopf; Additional reporting by Suzanne McGee, Laura Matthews and Gertrude Chavez-Dreyfuss; Editing by Megan Davies and William Mallard

Investors eye risk of debt-ceiling standoff after Democratic sweep

WASHINGTON, Nov 5 (Reuters) - US worker productivity grew faster than expected in the third quarter, depressing labor costs and supporting views that the labor market ​was not a source of inflation.Nonfarm productivity, which measures hourly ‌output per worker, increased at a 3.6% annualized rate last quarter after advancing by an upwardly revised 2.1% pace in the April-June quarter, the Labor Department's Bureau ​of Labor Statistics said on Thursday. Economists polled by Reuters had ​forecast productivity increasing at a 2.8% rate after a previously ⁠reported 1.4% growth pace in the second quarter. Productivity is volatile on ​a quarter-on-quarter basis. It grew at a 2.1% rate from a year ​ago. Economists and policymakers are hoping that an artificial intelligence spending blitz will translate into significant productivity gains.Unit labor costs — the price of labor per single unit of ​output — fell at a 0.7% rate last quarter. That was the first ​decline since the second quarter of 2025 and followed an upwardly revised 1.9% growth ‌pace ⁠in the second quarter. Economists had forecast labor costs rising at a 0.6% pace after growing at a previously reported 1.2% rate. Labor costs grew at a 2.4% rate from a year ago. They followed on the heels ​of data last week ​showing a ⁠moderate increase in the Employment Cost Index, the broadest measure of labor costs, in the third quarter.Policymakers and ​economists have argued that the jobs market was not ​a source ⁠of inflation. Benign wage inflation gives the Federal Reserve more latitude to focus on rising price pressures stemming from the ongoing US-Israeli war with Iran.The ⁠US ​central bank last week left its benchmark overnight ​interest rate in the 3.75%-4.00% range while acknowledging that inflation "remains elevated." Economists expect the Fed to ​raise borrowing costs in December.Reporting by Lucia Mutikani; Editing by Andrea Ricci

US worker productivity surges in third quarter

Nov 5 (Reuters) - Cleveland Federal Reserve President Beth Hammack said on ​Thursday the US central bank has more work to do to get inflation down to its ‌2% target, as price pressures remain unacceptably high."I expect that monetary policy will need to move to a restrictive stance to bring inflation back to 2% in a timely manner," Hammack said in the text of a speech prepared for delivery before an event in ​Zurich. While Hammack did not say when she would like the Fed to next raise rates, she noted ​that she prefers "getting to that stance through more frequent smaller adjustments when possible, something which ⁠would be less disruptive to households, businesses, and financial markets."Gradual increases "would also reduce the risk of having policy fall ​behind where it needs to be and an inflationary mindset take hold," Hammack said.The Fed last week left its benchmark ​interest rate within the 3.75%-4.00% range, even as policymakers acknowledged that inflation was too high. The Fed raised rates in September and financial markets broadly expect another increase in December. Hammack, along with Fed Governor Lisa Cook, dissented in favor of a rate hike last week. ​Hammack, who also dissented in late July when the Fed left rates unchanged, has argued that monetary policy and the ​broader scope of financial conditions are not providing the needed restraint on the economy to bring inflation to heel. That situation ‌means the ⁠Fed needs to push short-term borrowing costs higher.In her speech in Zurich, Hammack said central bank independence is critical to achieving stable inflation while adding that "the Fed has earned credibility" as an institution that operates on evidence and economic data rather than political pressure.DOLLAR'S RESERVE CURRENCY STATUSHammack devoted much of her remarks to the dollar and its critical role ​on the global stage.She said ​the dollar remains the ⁠world's reserve currency "by a wide margin" due to the strength of US institutions and the country's legal system."The dollar's status depends on preserving the fundamental qualities that underlie its ​strength, qualities that provide a solid foundation for any currency," Hammack said, adding that "this ​includes maintaining central ⁠bank independence so we can deliver on our mission."Hammack also said she does not foresee the dollar losing its role. "It's possible that the dollar's share of global reserves has peaked, but it's difficult to envision imminent major changes to its international ⁠role."She ​also said cryptocurrencies do not appear to be in a position to ​dethrone the greenback."The price volatility of cryptocurrencies makes them a less certain store of value than the dollar," Hammack said. "Until these issues are resolved, ​I remain skeptical that they pose a threat to the dollar's status."Reporting by Michael S. Derby; Editing by Paul Simao

Fed's Hammack favors gradual rate-hike path to lower inflation

LONDON, Nov 5 (Reuters) - Chip stocks fell on Thursday, under ​pressure from concern about the possible restraint on the AI buildout from a Democrat-controlled US Congress, while oil bounced, as investors weighed up how ‌soon the Iran war could realistically end.Brent crude futures were up around 2.5% at $96.8 a barrel, having tumbled nearly 9% overnight, falling below $100 a barrel for the first time in two months. The turnaround in oil prices helped boost the dollar, which had fallen along with US Treasury yields. The MSCI All-World index (.MIWD00000PUS), was flat on the day, having surrendered earlier gains, while Europe's ​STOXX 600 (.STOXX), rallied another 0.4%, leaving the index just shy of August's record high."When it comes to the headline result, it’s not too different ​from investor expectations beforehand, even if the scale of the Democratic victory was bigger than expected," Deutsche Bank strategist Jim ⁠Reid said."In many respects, the overall rally fits into the classic midterm pattern we’ve previously highlighted. After all, in 20 out of 20 midterm elections since ​World War Two, the S&amp;P 500 has been higher one year later," he said. Overnight on Wall Street, the benchmark indexes rallied as investors took heart from the ​clear outcome, with the S&amp;P 500 (.SPX), &nbsp;closing 1.6% higher, although tech stocks continued to struggle as investors feared greater scrutiny over AI infrastructure build-out.The Philadelphia semiconductor index (.SOX), fell 3.1%, having lost a quarter of its value in a month.Democrat data centre opponents who campaigned, in part, on moratoriums on data centre construction won victories in Texas and Georgia.Futures on the Nasdaq 100 ​were down 0.8%, while those on the S&amp;P itself were up 0.1%.SELL CHIPS, BUY BANKSTech stocks in Europe make up a smaller part of the broader ​market, which is more heavily dominated by banking shares and drugmakers. Those sectors jumped on Thursday. Within the regional tech sector, semiconductor-exposed stocks such as ASML (ASML.AS), Soitec (SOIT.PA), and Infineon (IFXGn.DE), fell ‌between 3% ⁠and 8%.Masahiko Loo, chief fixed income strategist at State Street Investment Management, said Democratic control raises the prospect of tougher scrutiny around data centres, power demand and consumer costs, but does not mean a free hand as President Donald Trump retains veto power."The blue wave therefore raises the political risk premium around US AI without necessarily derailing the broader AI capex cycle," he said.Renewable energy stocks, which have been targeted by the Trump administration over the past nearly two years, rallied, with ​Denmark's Orsted (ORSTED.CO), and Vestas (VWS.CO), up 5.3% and ​2.3%, respectively.OIL REVERSES COURSE, IRAN OUTLOOK ⁠UNCERTAINCrude oil, meanwhile, was last up 2.5% on the day, at $97 a barrel, having lost nearly 10% in two days, as traders chose to bet that Trump, facing a Democratic Congress and hurt by high energy prices caused by the ​Mideast conflict, would be less likely to escalate the war with Iran.Trump acknowledged on Wednesday that the war played ​a role in Republicans' ⁠defeat and his vice president, JD Vance, was even more blunt on X: "The reason we lost is the war."With the dollar and oil under pressure, gold traded above $4,100 an ounce, having risen 5% in two days, its largest two-day jump since early April.Bond prices eased from the day's highs, in line with the rebound in the crude ⁠price, leaving ​yields on benchmark 10-year US notes unchanged on the day at 4.89%.In currencies, the dollar edged ​into positive territory, gaining on the euro , which held at $1.1222, and against the pound, which held at $1.3466 after the Bank of England raised interest rates for the first time since 2023 and signalled more may ​be necessary if the Iran war continues.Additional reporting by Tom Westbrook and Rae Wee in Singapore; Editing by Sonali Paul, Sam Holmes, Philippa Fletcher and Alexander Smith

AI stocks fall, oil bounces back after 'blue wave' drop

Nov 5 (Reuters) - Gold prices extended their post-US midterm election rally to ‌a more than two-week high on Thursday, as the US dollar and Treasury yields weakened, while oil held below $100 a barrel and eased some inflation concerns.Spot gold gained 1.4% to $4,117.69 per ounce by 1316 ​GMT after hitting a session high of $4,146.63 per ounce, a level last seen ​on October 20. Gold jumped nearly 3.4% on Wednesday, its sharpest daily rise since ⁠August 19, with prices up over $250 this week from a one-year low of $3,869.85 hit ​on Friday. US gold futures for December delivery rose 1.3% to $4,127.40 per ounce."Precious metals have emerged ​as major winners following the US elections," said Ole Hansen, head of commodity strategy at Saxo Bank."The powerful combination of falling energy prices, easing inflation and interest rate concerns, and declining Treasury yields and the ​dollar has forced recently established speculative shorts to cover." Brent crude rose on Thursday but was below $100 ​a barrel after diving nearly 9% on Wednesday on hopes that major Democratic gains in the elections ‌could reduce ⁠the risk of further escalation in the Iran war. The US dollar and Treasury yields were at multi-week lows. Lower energy prices help ease inflation concerns and reduce expectations of higher-for-longer interest rates, while a weaker dollar makes dollar-denominated gold less expensive for buyers holding other ​currencies, supporting demand ​for the precious metal.Traders ⁠currently see an 81% chance that the Federal Reserve will raise rates in December, according to CME's FedWatch tool, opens new tab.Investors are also awaiting US ​non-farm payrolls report due on Friday for further cues on the ​central bank's ⁠trajectory.Meanwhile, the Bank of England is widely expected to raise interest rates for the first time in three years on Thursday, taking a path already embarked on by all its main peers.Among ⁠other metals, ​spot silver rose 0.7% to $52.56 per ounce, platinum gained ​1.3% to $1,516.14, and palladium climbed 3% to $1,034.62.Reporting by Sherin Sans in Bengaluru; ​additional reporting by Swati Verma and Sukanya Mitra; Editing by Harikrishnan Nair and Louise Heavens

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