Top of main content

Investment Daily: US stocks fell with earnings and midterm elections in focus

3 November 2026

Key takeaways

  • US stocks fell; Treasury yield curve flattened.
  • European stocks and government bonds rose.
  • Asian stocks mostly rose.

Markets

US stocks declined on Monday, led by weakness in tech and energy shares, with earnings, midterm elections and Friday’s nonfarm payrolls data in focus. The S&P 500 ended 0.5% lower.

The US Treasury yield curve flattened amid lower oil prices and solid manufacturing data. 10-year yields fell 2bp to 4.91%.

European stocks rose on Monday as oil prices fell. The Euro Stoxx 50 closed 0.7% higher. The German DAX rose 0.6%, and the French CAC gained 1.0%. In the UK, the FTSE 100 was up 0.3%.

European government bonds rose. 10-year German bund yields fell 3bp to 3.29%, and 10-year French bond yields fell 7bp to 4.90%. In the UK, 10-year gilt yields fell 9bp to 5.19%.

Asian stock markets traded mixed but mostly higher on Monday. Korea’s KOSPI rallied 2.2% as semiconductor heavy-weights rebounded, while Japan’s Nikkei 225 fell 0.3%. Chinese equities rose on expectations of government liquidity support, with the Shanghai Composite and Hong Kong’s Hang Seng Index up 1.1% and 0.4% respectively. India’s Sensex rose 1.7%.

Crude oil prices dropped on Monday as the US and Iran signalled openness to negotiation. WTI for December delivery settled 7.4% lower at USD96.5 a barrel. 

Key Data Releases and Events

Releases yesterday

In the US, the ISM manufacturing index came in at 55.5 in October, up from 54.5 in September, beating expectations.

Releases due today (3 November 2026)

In the US, job openings should rebound, while quits are likely to remain stable, consistent with subdued wage growth.

The latest opinion polls suggest that in today’s US mid-term elections the Democrats will gain a majority in both the House of Representatives and the Senate.

The Reserve Bank of Australia is expected to raise interest rates given above-target inflation prints and Governor Bullock’s recent remarks.

Back to top  

Explore ways to invest

Capital at risk. Eligibility criteria and fees apply

Related Insights

The US midterm elections on 3 November could reshape the legislative, fiscal and...[28 Oct]
The 2026 midterms could change control of Congress and with it, the legislative, fiscal...[5 Oct]
Historically, US midterm elections often lead to some volatility, but markets have proven...[1 Oct]
The Federal Reserve unanimously raised the federal funds target range by 0.25% to 3.75%...[17 Sep]

Disclaimer

We’re not trying to sell you any products or services, we’re just sharing information. This information isn’t tailored for you. It’s important you consider a range of factors when making investment decisions, and if you need help, speak to a financial adviser.

As with all investments, historical data shouldn’t be taken as an indication of future performance. We can’t be held responsible for any financial decisions you make because of this information. Investing comes with risks, and there’s a chance you might not get back as much as you put in.

This document provides you with information about markets or economic events. We use publicly available information, which we believe is reliable but we haven’t verified the information so we can’t guarantee its accuracy.

This document belongs to HSBC. You shouldn’t copy, store or share any information in it unless you have written permission from us.

We’ll never share this document in a country where it’s illegal.

This document is prepared by, or on behalf of, HSBC UK Bank Plc, which is owned by HSBC Holdings plc. HSBC’s corporate address is 1 Centenary Square, Birmingham BI IHQ United Kingdom. HSBC UK is governed by the laws of England and Wales. We’re authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA. Our firm reference number is 765112 and our company registration number is 9928412.