Market brief — November 5, 2026

In 30 seconds

• Yesterday, Wednesday November 4, markets rallied sharply after the US midterm elections, with the S&P 500 rising 1.58%, the Nasdaq 1.44%, and European indices gaining roughly 2%.^[1][2]
• The move reflected expectations of a more moderate US political environment, lower long-term bond yields, and falling oil prices, although euro-area inflation remained a significant counterweight.^[2][5][7]
• For savers, the key message is that the rally was powerful but politically driven; its durability now depends on economic data, interest-rate expectations, and whether market participation broadens.

The figures from the last session

These are Wednesday’s closing levels, not live prices for Thursday.

• CAC 40: 8,177.89, up 1.96%; broad European relief rally.
• Euro Stoxx 50: 6,265.71, up 1.97%; regional risk appetite improved.
• DAX: 26,437.67, up 2.22%; industrial shares benefited from tariff hopes.
• S&P 500: 7,688.62, up 1.58%; strongest gain in several months.^[1][2]
• Nasdaq: 25,736.51, up 1.44%; technology shares advanced, but lagged the Dow.^[1][2]

The subject of the day, explained

The dominant theme was the US midterm-election result. Reports described a Democratic victory that raised expectations of fewer abrupt tariff measures and a more predictable policy environment. US shares, bonds, and several European markets rose, while the dollar weakened and long-term Treasury yields moved lower.^[2][5]

Lower yields can support share prices because future company profits are discounted at a lower rate. The comparison is straightforward: when a low-risk savings product pays less, shares can appear relatively more attractive. Falling oil prices also reduce a major input cost and may ease future inflation, but the effect is uneven because energy companies lose revenue when crude prices decline.^[4][5]

The analysis of the day

Wednesday’s advance was broad across regions, but its internal quality was mixed. The S&P 500 gained 1.58%, while the smaller-company Russell 2000 also rose about 1.5%, suggesting the move was not limited entirely to the largest technology groups.^[5] European indices recorded comparable gains, and the DAX outperformed with a 2.22% increase.^[2]

The political explanation is credible, but it does not remove the macroeconomic constraint. Eurozone inflation reportedly reached 4% in October, twice the European Central Bank’s target.^[7] That limits how quickly European interest rates could fall, even as lower oil prices may gradually reduce inflation pressure. In the United States, the Federal Reserve kept its policy rate at 3.75%–4.00% on October 28, with two officials dissenting in favor of a rate increase.^[2]

The scanner provides a useful qualification. Only 54% of tracked shares stood above their 200-day average and 50% above their 50-day average. That is constructive, but not a decisive confirmation of a market-wide trend. The most likely near-term scenario is continued strength at the open, followed by greater selectivity as investors test whether the election rally can survive economic data. A broader rise in shares and stable or lower bond yields would confirm the move. A renewed rise in yields, weak employment data, or a retreat below Wednesday’s closing levels would weaken it.

The word of the day

Market breadth measures how many shares participate in a market move. If an index rises while only a few large companies advance, breadth is weak; if most shares rise, the rally is more broadly supported.

What the scanner sees

• Remitly Global (RELY), financial services: the share price rose 6.7% and moved above its highest level of the past 20 sessions, with stronger volume and a tightening price range. It is an exceptional score, but the supplied data do not identify a specific news catalyst.
• Entergy (ETR), utilities: the share price gained 2.7% and exceeded its 20-session high, with stronger volume and an upward trend signal. The move fits the scanner’s unusually strong concentration in US utilities.
• Home Depot (HD), retail: the share price rose 6.5% and exceeded its 20-session high, with stronger volume and a powerful trend signal. This aligns with the Wednesday advance in consumer-related shares reported in the US market.^[5]

These signals partly confirm the day’s rotation beyond technology, especially through utilities, retail, and financial services. However, scanner signals describe price behavior, not the quality of future earnings, so they do not by themselves validate the broader political rally.

The agenda

• US employment report, expected Friday: it could shift expectations for Federal Reserve policy and move Treasury yields.^[4]
• Eurozone inflation data: with inflation already reported at 4% for October, any revision could affect expectations for European Central Bank policy.^[7]
• US Treasury yields and the dollar: their reaction to the election outcome will indicate whether the rally is being reinforced by easier financial conditions or merely by a one-day political adjustment.
• Oil prices: the sharp decline reported for Brent could reduce inflation pressure, but further weakness would weigh on energy-sector earnings.^[3][5]

To watch

• A renewed rise in long-term bond yields could reduce the support currently provided to equity valuations.
• A disappointing employment report could revive concern about economic growth, even if it encourages expectations of lower interest rates.

The key number: 1.58% — the S&P 500’s gain on Wednesday, large enough to mark a powerful rebound but insufficient on its own to prove that market participation has fully broadened.