A session marked by strong risk aversion, with the tech sector leading a broad sell-off as the market assessed the impact of the Democratic victory in both houses of Congress on the AI sector, amid fears of stricter regulation of data centers—particularly in Texas—and its effect on demand for semiconductors. Equity indices closed with sharp declines: the Nasdaq fell 5.5%, the S&P 500 4.4%, and the Dow Jones 3.4%, with the S&P posting its worst day since April 2025 and all 11 of its sectors in the red. Asia also closed lower, with the Kospi falling 5.3% and the Nikkei 1.8%, while the CSI 300 rose 0.3% and Europe bucked the trend, with the Stoxx 600 advancing 0.9%. As for commodities, oil rebounded, with WTI rising 2.8% to $90.6 and Brent 4.1% to $98.5, while gold advanced 0.7%, silver fell 0.8%, and copper dropped 3.6%. Treasuries rallied as a safe haven despite the rise in oil prices, with the short end leading the way and the market scaling back expectations of Fed rate hikes; the 2-year UST fell 12 bps, the 10-year 5 bps, and the 30-year 2 bps; the 10-year Bund fell 2.9 bps, and the 10-year Gilt rose 0.3 bps. On the FX and volatility front, the DXY closed flat at 101.6, and the VIX posted its biggest jump in nearly two years, rising 11.5 points to 28.1.

In Venezuela/PDVSA, bonds extended their losses for the week, with declines of 0.8–1.6 points on the sovereign yield curve and 0.8–1.1 points on PDVSA. The move coincided with reports that Rubio, who is in charge of implementing policy toward Venezuela, is considering leaving the administration following the Republican defeat—a claim denied by the White House and the State Department. Elecar fell 2.8 points and the PDV20 fell 0.3 points. Trading volume totaled $360 million, concentrated in the PDV'22 and PDV'24.

Latin American yield curves closed mostly lower, dragged down by global risk aversion. In the investment-grade (IG) segment, Mexico closed flat, while in the high-yield (HY) segment, Argentina led the declines with a drop of 1.9 points, followed by Ecuador at 0.4 points and Brazil at 0.3 points; El Salvador, the Dominican Republic, Pemex, and Colombia each fell 0.1 points. Trading volume was low to moderate.