Markets Rebound as Alphabet Sells Long-Term Euro Bonds

Global financial markets recovered on Monday, November 2, 2026, following October's technology stock selloff, as falling oil prices eased immediate market pressure. Investors also assessed Alphabet's long-term euro bond issuance, upcoming US midterm elections, and government borrowing plans amid growing uncertainty surrounding artificial intelligence infrastructure spending.

Brent crude fell approximately 3% during Monday's trading after settling at $113.10 per barrel on Friday. The decline followed diplomatic mediation in the Gulf, although escalating tensions involving Iran and potential US military action remained concerns, according to FXStreet.

US stock futures also recovered after Friday's losses. S&P futures had fallen approximately 1.8% to 7,614, while Nasdaq futures declined 3.5% to 28,534. Both indices subsequently gained ground when trading resumed, with futures rising between 0.3% and 0.4% before advancing further during Asian trading.

Asian markets delivered mixed performances. South Korea's Kospi gained 2.2% to 5,859, while Shanghai advanced 0.9%. Japan's Nikkei declined 0.3%. China's official manufacturing purchasing managers' index dropped to 49.3, below the expected 49.9, marking its second consecutive month of contraction.

Alphabet is marketing a seven-tranche euro bond offering with indicative spreads ranging from 60 basis points above mid-swaps for its two-year debt to 205-210 basis points for its 19-year issuance. The offering highlights continued borrowing activity among major technology companies despite rising financing costs.

The company's existing long-term debt has also faced pressure. Its £1 billion, 6.125% 100-year bond issued in February traded near 88.5 in September, corresponding to a yield of 6.87%. Alphabet's 2058 bonds were also trading more than 20 basis points wider than their initial issuance spreads.

US midterm elections scheduled for Tuesday, November 3, are another major focus for investors. The results could influence future regulations governing data center construction, electricity infrastructure, and artificial intelligence investment across the country.

Prediction markets assign Democrats a 94% probability of winning the House and a 71% probability of securing the Senate. However, closely contested races and ranked-choice voting in Maine and Alaska could delay the final determination of Senate control until approximately November 13-18.

The outcome of state-level elections could have significant consequences for data center development. SemiAnalysis estimates that the United States could add 62.2 gigawatts of net data center capacity in 2028, with approximately 70% concentrated in 13 states.

Texas has placed its entire 474-gigawatt ERCOT electricity interconnection queue under review and suspended Texas Commission on Environmental Quality data center permits until approximately mid-December. Governor Greg Abbott has proposed legislative restrictions and eliminating sales tax incentives, while his opponent Hinojosa supports a development moratorium.

Local opposition is also creating obstacles for the industry. Approximately 34-41 data center-related measures are appearing on local ballots, including around 21 in Ohio. During the first quarter, local opposition blocked or delayed more than 75 projects valued at approximately $130 billion, according to the figures cited by FXStreet.

European markets face additional pressure from political uncertainty and energy concerns. The spread between French OAT and German Bund bonds reached 165 basis points following Fitch's negative outlook on France. Belgium also faces the possibility of government collapse, while German gas storage stands at just 62%.

European technology shares nevertheless advanced on Monday. ASML gained 2%, STMicroelectronics rose 3%, and Siemens Energy increased 1.5%, while oil-producing companies recorded losses ranging from 1% to 2.5%.

US Treasury markets are also awaiting the government's borrowing announcement. The 10-year Treasury yield stood at 4.92% ahead of the ISM economic data release, while Wednesday's November 4 refunding announcement is scheduled for 8:30 a.m. Eastern Time. Market participants are watching discussions about potentially eliminating the 20-year Treasury bond issuance.