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U.S. stocks surged in a broad rally, with the Dow jumping 3.03% to its biggest single-session gain since April 9, 2025, as investors welcomed divided government and plunging oil prices.
The S&P 500 gained 1.58% and the Nasdaq rose 1.44%, while crude oil tumbled 8.3% to $88.12 and gold advanced 3.4% to $4,061.10; meanwhile, AI-related stocks remained under pressure, with CoreWeave falling 9.9% and Hut 8 sliding 23%.
Lower energy prices and expectations of political gridlock could support broader equities and ease inflation concerns, while AI infrastructure financing and regulatory risks may continue pressuring selected technology stocks.
U.S. stocks surged, with the Dow posting its largest single-day gain since April 2025 as investors welcomed expectations of political gridlock and falling oil prices.
The Dow jumped 3.03%, the S&P 500 gained 1.58%, and the Nasdaq advanced 1.44%, while crude oil plunged 8.3% to $88.12 per barrel and gold climbed 3.4% to $4,061.10.
Continued oil weakness and expectations of fewer regulatory changes could support equities, although persistent uncertainty surrounding AI investments may limit further gains.
US private-sector employment increased by 86,000 in October, above the market expectation of 69,000 and unchanged from the revised September figure, according to ADP.
Hiring was led by services. Trade, transportation and utilities added 39,000 jobs, education and health services added 28,000, leisure and hospitality added 19,000, and financial activities added 15,000. Construction added 13,000 jobs.
Professional and business services cut 27,000 jobs, while natural resources and mining declined by 8,000 and information services by 2,000. Medium-sized employers added 33,000 jobs, large firms added 24,000, and small businesses added about 28,000.
ADP reported that job changers saw pay rise 4.8% year on year, while all workers' base pay rose 3.2% and total compensation rose 4.7%. The next major labor-market test is the October nonfarm payrolls report due Friday. Market expectations cited in the source are for 65,000 payroll additions, versus 29,000 in September, and an unemployment rate of 4.2%.
Gold surged 3.4% on Wednesday, heading for its biggest daily gain since August as a sharply weaker U.S. dollar boosted demand for precious metals and pushed spot gold back above $4,000 an ounce.
Spot gold reached $4,059.95, while silver gained 4.9%, platinum climbed 5.6%, and palladium advanced 7.5%; investors are now watching Friday's U.S. nonfarm payrolls report for clues on Fed policy.
Further dollar weakness and expectations of easier monetary policy could extend the precious metals rally, although stronger employment data and potential Fed rate hikes could limit upside.