Global Markets Volatile Amid US Midterms and Iran Strikes
Global stocks and oil prices fluctuated as investors weighed US midterm election results, AI investment sustainability, and conflicting US signals regarding military action in Iran.
Global financial markets experienced significant volatility between November 2 and November 3, 2026, driven by the US midterm elections and geopolitical tensions. Initial gains in technology stocks and a rebound in the Nasdaq were tempered by investor caution over the sustainability of AI capital expenditure and upcoming earnings reports. Donald Trump initially signaled a preference for diplomacy over military action against Iran, which triggered a 4% drop in crude oil prices as hopes grew for a peace deal mediated by Qatar.
This diplomatic optimism shifted abruptly on November 3. Despite indications from the president and Vice President JD Vance that progress was being made with Tehran, US officials confirmed military strikes on Iran's Qeshm Island. Simultaneously, the US announced it would mediate talks between Ukraine and Russia in Abu Dhabi on November 10-11.
In the corporate sector, Apple Inc. briefly became the world's most valuable listed company but later reported lower forecasted gross margins for the holiday quarter. Other tech volatility followed Marvell Technology's $115 billion acquisition of Lumentum and Oracle's plan to raise $20 billion for AI. Meanwhile, China's central bank attempted to stabilize its struggling onshore stock market by injecting over $15 billion through a new swap facility.
