Indices · 5 November 2026
DAX and S&P 500 Rally on Democratic Sweep, Jobs Data Ahead
Both indices surged Wednesday as oil tumbled and post-election relief drove broad risk-on sentiment, with nonfarm payrolls and CPI lined up this week.
Ultimo Research
The S&P 500 jumped 1.58% Wednesday while the Dow surged 3.03%, adding 1,569 points, as the DAX climbed 2.2% to close at 26,438, driven by improved risk sentiment following the Democrats' midterm victory and hopes of de-escalation in the US-Iran conflict. Oil prices dipped sharply, with West Texas Intermediate crude futures falling more than 8% to settle at $88.12 a barrel. Banks led DAX gains as bond yields fell, with Deutsche Bank and Commerzbank rising 7.7% and 4.8% respectively, while consumer discretionary, financial and real estate shares led S&P advances.
Technology stocks lagged amid concerns over reduced AI data-centre investment, and defence stocks came under pressure, with Rheinmetall dropping 3%. The sharp reversal from late-October lows followed weeks of uncertainty around the midterm elections and elevated energy prices. The DAX sits around 2.8% below its record high of 26,618.74, set on 28 August 2026, while the S&P traded near 7,690 by Wednesday's close.
What the calendar says
The Bank of England announces its decision and publishes its Monetary Policy Report today, 5 November at 11:00 UTC. That release moves GBP-USD pairs but carries indirect weight for equity sentiment through any fresh signal on UK rate policy and growth.
Friday's US nonfarm payrolls report arrives 6 November at 12:30 UTC and remains the week's headline event. The jobs print moves EUR-USD, GBP-USD, USD-JPY and gold, and any material surprise will reshape expectations for Federal Reserve policy and risk appetite heading into month-end.
Next Tuesday brings US inflation data when the Bureau of Labor Statistics releases October CPI 10 November at 12:30 UTC. That number affects the same currency pairs plus BTC-USD and ETH-USD, and will set the tone for how markets interpret the Fed's next move in December. A full economic calendar carries the detail.
S&P 500 technical picture
The hourly chart shows the S&P 500 trading around 7,680-7,697 after Wednesday's rally lifted the index from support near 7,535-7,552 earlier in the week. The sharp low on 30-31 October printed close to 7,480, forming a clear floor that has held through two tests. Resistance sits at 7,787, the 28 October peak, and a clean break above that zone would reopen the path toward the recent all-time highs. The bounce from lows has been steep, leaving the index extended in the very short term, and the November payrolls number will likely determine whether the bid holds or profit-taking returns.
DAX40 technical picture
The DAX chart confirms a powerful breakout, with the index now trading around 26,438-26,557 and pressing against its 26,619 all-time high from late August. Support has firmed around 25,750-25,850, a zone that capped the index through late October and early November before Wednesday's surge. The hourly structure shows a strong uptrend with higher lows intact since the 30 October spike low near 25,200. A daily close above 26,620 would mark a fresh record, though momentum indicators on shorter timeframes suggest the rally has stretched quickly. The charts justify watching 26,000 as the key pivot; any pullback that holds that round number keeps the bullish structure alive, while a break below would expose the 25,750 support band again.
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