Oil prices have been particularly important. Lower energy prices can ease concerns about inflation and reduce pressure on expectations for interest rates. This has helped improve the broader investment environment, although the Federal Reserve’s policy outlook remains a key variable for markets.

The political backdrop has also influenced trading. The midterm results initially triggered uncertainty around the future direction of US crypto regulation. However, investors appear to have reassessed the immediate impact, allowing digital assets to recover alongside equities.

$772 Million in Crypto Liquidations: Short Sellers Take the Biggest Hit

Derivatives activity has played a major role in accelerating the latest recovery. According to…