Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
AKTIEN
The ballots are still being counted but early tallies suggest that the Democrats have significantly outperformed, with most forecasts now pointing towards the party taking control of both the House of Representatives and the Senate. The result has caught financial markets off-guard, prompting a sizeable selloff in US stock market futures, particularly in the technology sector. Nasdaq futures were down 2% earlier this morning, while S&P 500 futures shed 1.2% and those on the Dow Jones incurred a more moderate 0.8% loss.
The dollar is likewise under pressure today, with the DXY falling as low as 101.2 points, as market participants weigh up the prospect of the legislative gridlock that will likely grip the US government over the next two years. The outlook for AI infrastructure buildouts is looking a lot bleaker, as the sector braces for greater regulatory scrutiny and legal hurdles, especially in states such as Texas, where data centres were explicitly on the ballot.
The same is true of cryptocurrencies, which are now unlikely to see any legislative progress over the next couple of years. Bitcoin dropped deep into $75k territory earlier in the session but recouped the losses in a classic ‘sell the rumour, buy the news’ turnaround. Markets in general are still somewhat unsettled this soon after the election and the volatility will probably last throughout the remainder of the day. Several indicators are already showing signs of reversal, but the day is still young.
Crude oil prices have plummeted so far this week as the prospect of a peaceful resolution to the conflict in Iran gains ground. Qatar continues to mediate talks between the United States and the Iranian regime, with both sides expressing cautious optimism about a potential end to hostilities. The Brent Crude benchmark tumbled 8% on Monday and has not yet bounced back, remaining at around $104 per barrel as of this morning. US contracts meanwhile have ended their brief stint in the three-figure range, falling to $96 per barrel earlier this week. Of course, markets have been in this situation many times over the last six months, and expectations remain tempered. Nevertheless, the loss of the House of Representatives and Senate could well impede future war spending, which may affect the future course of the conflict.
Advanced Micro Devices (AMD) surged in after-market trading last night after the company published its third quarter earnings report. The results easily exceeded expectations on the top and bottom lines, while data centre revenue doubled compared to the same period last year. The cherry on top was that Q4 revenue targets were also adjusted significantly higher, from forecasts of $16.2 billion to a predicted $17 billion. AMD has now officially surpassed Intel (INTC) in data centre revenue, and if fourth quarter forecasts hold, the perennial underdog will dethrone Intel in total revenue as well. AMD stock rose up to 8% in extended hours following the earnings call.
About the Author
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
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