Weekly Market Recap: Election Impact and Market Movers: Last Week’s Economic Surge and Key Earnings Insights

In the previous week, key economic events and market movements took center stage, highlighted by the US presidential election, which triggered a strong dollar rally and significant stock gains. Economic updates included rate decisions from Australia and the US, both of which maintained cautious stances on inflation. Meanwhile, corporate earnings reports from major companies like eBay, AIG, and Lyft showcased notable performance metrics, with Lyft shares surging nearly 32% due to positive earnings guidance and growth in commuter trips. Commodities and global indices reflected these developments, providing insights into current market dynamics and investor sentiment.

Tuesday, November 5

All Day – USA: Presidential Election (USD)

Following Donald Trump’s decisive presidential election win, the US dollar surged, marking its largest single-day gain in two years, and stock markets rallied. Small-cap stocks in the Russell 2000 soared nearly 6%, while S&P 500 and Nasdaq futures rose by over 2%. Treasury yields climbed to their highest since July, with concerns over Trump’s planned tax cuts on top of a large budget deficit. Bitcoin surged 8% on anticipation of a lighter regulatory stance, while Tesla rose 12%, buoyed by Elon Musk’s support for Trump and potential government role. Meanwhile, the dollar reached highs against the euro, yen, and peso, driven by expectations of new tariffs and trade measures under Trump’s administration. Overseas, Asian and European markets responded mixed, with Japan’s Nikkei rising and eurozone bond yields diverging sharply from US Treasuries due to differing economic outlooks.

05:30 am – Australia: Cash Rate (AUD)

The Board held the cash rate steady at 4.35%, with underlying inflation still above target despite a significant decline from 2022 levels. Headline inflation dropped to 2.8% in the September quarter, aided by lower fuel and electricity costs, though temporary factors contributed. Forecasts suggest inflation may not reach the 2.5% target midpoint sustainably until 2026.

The AUDUSD edged higher by 0.8% compared to the previous close.

17:00 – USA: ISM Services PMI (USD)

In October, the Services PMI rose to 56, marking the fourth consecutive month of expansion in the US services sector, driven by strong activity in business, new orders, and employment. This is the highest level since July 2022, with 14 industries reporting growth.

The EURUSD pair appreciated by 0.45%, reflecting a modest uptick in demand for the Euro relative to the US dollar.

Thursday, November 7

14:00 – UK: Official Bank Rate (GBP)

The Monetary Policy Committee (MPC) lowered the Bank Rate to 4.75% in November 2024, noting steady progress in reducing inflation, which fell to 1.7% in September but is expected to rise to around 2.5% by year-end. The MPC anticipates inflation will return to the 2% target in the medium term and plans a gradual approach to ensure sustained stability.

The GBPUSD edged higher by 0.75%.

15:30 – USA: Unemployment Claims (USD)

Seasonally adjusted initial jobless claims for the week ending November 2 rose by 3,000 to 221,000. The prior week’s claims were revised up to 218,000. The 4-week moving average decreased by 9,750 to 227,250, with a slight revision of the previous average to 237,000.

The EURUSD rose by 0.6% from the previous day.

21:00 – USA: Federal Funds Rate (USD)

The Committee, aiming for maximum employment and 2% inflation, lowered the federal funds rate by 0.25% to a range of 4.5%–4.75%. They will assess data closely before making further adjustments and will continue reducing Treasury and mortgage-backed securities holdings. The Committee remains committed to supporting employment and managing inflation risks.

The US Dollar decreased by 0.7%.

15:30 – Canada: Employment Change (CAD)

In October, employment saw little overall change, increasing by 15,000 jobs (+0.1%), with the employment rate dipping slightly to 60.6% while the unemployment rate remained at 6.5%.

The USDCAD exchange rate increased by 0.3% compared to the previous day’s close.

Crude Oil

• Crude oil prices rose by 1.1% over the past week

Brent Oil

• Brent increased by 1.1% compared to the previous week

Gold

• The precious metal Gold (XAUUSD) concluded the week on Friday with a 1.9% weekly decrease

Silver

• XAGUSD decreased by 3.5% from the previous week

• S&P 500 increased by 4.7%
• DJIA was up by 4.6%
• NASDAQ 100 rose by 5.3%

• Celularity Inc. (CELU) 146.53%
• Autozi Internet Technology (Global) Ltd. (AZI) 136.45%
• FREYR Battery, Inc (FREY) 109.12%

• Evolent Health, Inc. (EVH) -45.62%
• ProPhase Labs, Inc. (PRPH) -45.45%
• Earlyworks Co., Ltd (ELWS) -44.59%

Monday, November 4: American International Group Inc (AIG)

Tuesday, November 5: Devon Energy Corporation (DVN)

Tuesday, November 5: eBay Inc. (EBAY)

Wednesday, November 6: Lyft, Inc. (LYFT)

American International Group Inc (AIG) reported a third-quarter profit of $459 million, or $1.23 per share adjusted, surpassing analyst expectations of $1.13 per share. Revenue reached $6.84 billion. AIG shares have risen 13% year-to-date, trailing the S&P 500’s 20% gain.

AIG shares ticked lower by 0.18% fron the previous week.

Devon Energy (DVN) reported Q3 earnings of $1.10 per share, beating analysts estimate of $1.06, with revenues at $4.02 billion, 7.2% above expectations.

DNV shares rose by 1.44% compared to the previous week.

eBay’s Q3 2024 revenue rose 3% year-over-year to $2.58 billion, with net income dropping 51% to $636 million. Profit margin fell to 25%, down from 52% due to higher expenses. EPS hit $1.31, surpassing estimates.

EBAY shares saw a weekly change of 6.5%.

Lyft’s stock jumped on strong earnings guidance, with Q4 adjusted earnings projected up to $105 million, surpassing estimates. Record ridership saw 24.4 million riders taking 217 million trips in Q3. Commuters now make up nearly half of weekday rides, boosted by Lyft’s Price Lock feature. Lyft also announced plans to bring autonomous vehicles to its platform by 2025 through partnerships with Mobileye and May Mobility.

LYFT shares jumped 31.9% from the previous week.

In conclusion, last week’s economic events and market movements highlighted the impact of the U.S. presidential election and central bank decisions, which influenced currency strength and stock market rallies. Corporate earnings reports revealed significant performance insights, notably Lyft’s strong guidance and record ridership, which fueled a sharp stock increase. Commodity trends and stock indices reflected investor sentiment and provided a snapshot of broader economic momentum as markets responded to these key developments.