Big US tech names led Wednesday's rally, with the five largest sector players adding nearly $1 trillion in market value in a single session. Amazon jumped by as much as 8.3% intraday, Microsoft gained about 7%, Alphabet rose by 5.9%, Meta advanced by 3.6%, and Apple, which has been more restrained on AI spending, climbed by over 6%. Among the Magnificent Seven, only Nvidia and Tesla lagged. In Asia, trading was mixed: Samsung Electronics and SK Hynix fell by more than 7%, Korea's Kospi dropped by 5.5%, and Nasdaq 100 futures were down roughly 1.1%. At the same time, Tencent and Alibaba each gained at least 6%, and the Hang Seng Tech index added 5.1%.

What moved markets was the election outcome. Democrats captured majorities in both the US House of Representatives and Senate, flipping seats in South Carolina, Texas, and Kansas, and won control of several state legislatures and governorships. Many Democratic candidates campaigned on plans to slow certain AI developments, notably large-scale data-center builds. Exit polls show that voters strongly oppose new data centers near residential areas, and many analysts now expect regulation to be driven at the state level.

Markets read that as a potential brake on the huge capital spending that is eating into free cash flow. Amazon, Alphabet, and Meta already report negative free cash flow — capex exceeds operating cash flow — forcing them to tap debt and equity markets. That's good news for Microsoft, Amazon, Alphabet, and Meta, and bad news for Nvidia, a main beneficiary of data-center builds, and for Tesla as well.

Wednesday was the best day for the index since September 21. The market narrative flipped 180 degrees: regulation is no longer perceived as a threat but as a mechanism to curb runaway spending.

Oil and bond markets reacted to expectations that the Iran conflict may wind down. Brent plunged by more than 8% on Wednesday and fell for a fourth consecutive day, easing another 0.7% to $93.94/bbl after Senate Democratic leader Chuck Schumer said the conflict could be ended. The US 10-year Treasury yield dropped to about 4.84%, the lowest since September 10 and well below the 5.02% level before the October 28 Fed decision, as markets priced in expectations that fiscal and tariff plans will be constrained.

Against this background, I think dollar pressure will persist while yields and oil decline, and gold should benefit from the same dynamics. Goldman Sachs labeled the results a "blue tsunami" and expects Democrats to use upcoming budget windows to limit the Iran conflict, roll back some tariffs, and revisit recent spending cuts. Some experts also believe AI spending will not collapse entirely.

As for S&P 500 technicals, the immediate task for buyers is to overcome the resistance level of $7,679. That would signal upside momentum and open a move to $7,698. Holding $7,718 would further strengthen bulls' positions. In case of a downward move amid waning risk appetite, buyers should step in near $7,656. A break below that level would likely push the index to $7,633 and open the way to $7,607.