The Morning Briefing: November 5, 2026

Democrats won control of both chambers of Congress in the midterm elections, and the fallout arrived fast: House Speaker Mike Johnson said he will not seek a Republican leadership post, President Donald Trump said he will work with the new majority, and Vice President JD Vance blamed the war with Iran for the Republican losses. Overnight, Iran said two oil tankers and a tugboat caught fire in the Strait of Hormuz, Hong Kong jailed activist Joshua Wong for 10 years, and CVS Health said it will split in two.

Johnson steps aside as Democrats take both chambers

Speaker Mike Johnson will not seek a House Republican leadership post after the midterm losses, ending three years as speaker. Democrats were projected to win control of the House on Tuesday night and the Senate early Wednesday, giving the party both chambers of Congress when the new session opens in January.

President Donald Trump said he accepts the results and can work with Democrats on more issues than people expect, according to CNBC. Vice President JD Vance gave a different account of the defeat, saying the war with Iran was the reason Republicans lost. House Democratic leader Hakeem Jeffries is in line to become speaker, which would make him the first Black speaker in U.S. history. Read the full story on Johnson stepping aside and the House projection.

Two tankers and a tugboat catch fire in the Strait of Hormuz

Iran said two oil tankers and a tugboat caught fire in the Strait of Hormuz, a day after Tehran said four tankers had been destroyed by mines near the waterway. The Islamic Revolutionary Guard Corps said a tanker on what it called an unapproved route hit a mine. The reports have not been confirmed on their own, and no vessels were named.

Oil prices fell again on the news. Brent crude dropped below $94 a barrel, extending a slide of nearly 9% in the prior session, as traders priced in hopes of a diplomatic opening with Iran after Trump said the United States has no plans for military action before the midterms. Read the full story on the Hormuz tanker fires.

Hong Kong jails Joshua Wong for 10 years

Hong Kong activist Joshua Wong was sentenced to 10 years in prison on a national security charge, the heaviest sentence yet under the city’s security law. The sentence closes a second security-law case against Wong, one of the best-known figures of Hong Kong’s pro-democracy movement. Read the full story on the Wong sentence.

Stocks rally as gold tops $4,000

Wall Street rallied on Wednesday after the midterm results gave markets political clarity. The Dow Jones Industrial Average rose more than 1,300 points, its best day since April 2025, and the S&P 500 gained 1.6%. Gold topped $4,000 an ounce. Falling oil helped: West Texas Intermediate crude dropped more than 8% to about $88 a barrel, and consumer and defensive stocks led the advance, with Walmart up about 3%.

The move may not hold through Thursday. Futures pointed to a weaker open for the Nasdaq, down about 1.2%, with S&P 500 futures off about 0.3% while Dow futures were slightly higher. In Asia, South Korea’s Kospi fell about 4.8% as chip stocks dropped. Read the full story on the market rally.

CVS Health will split in two by 2028

CVS Health said on Wednesday it will separate into two independent, publicly traded companies, unwinding the vertically integrated healthcare group it spent years building through acquisitions. One company, which will keep the CVS Health name for now, will hold insurer Aetna, pharmacy benefit manager CVS Caremark, CVS Specialty, Oak Street Health and Signify Health, led by current chief executive David Joyner. The other, to be called CVS Pharmacy, will hold about 9,000 retail pharmacies, the mail pharmacy, MinuteClinic and the Health100 technology business, led by group president Prem Shah.

The separation is expected to finish in the first half of 2028, subject to final board approval, an effective Form 10 registration with the Securities and Exchange Commission and confirmation of tax-free treatment. Shareholders will own shares in both companies. CVS also forecast 2027 adjusted earnings of at least $8.65 a share, ahead of the $8.53 analysts expected, and its shares fell on the announcement.

Real Madrid stay perfect as Como tie a Champions League record

Federico Valverde scored in the 92nd minute to give Real Madrid a 3-2 win at AEK Athens on Wednesday, keeping the club perfect in the Champions League with four wins from four. Madrid twice came from behind: Jude Bellingham equalized after Aboubakary Koita put AEK ahead in the 12th minute, and Kylian Mbappe leveled again after Stavros Pilios restored the home lead with 15 minutes left. Madrid sit second in the league-phase table on 12 points, behind Paris Saint-Germain on goal difference.

Elsewhere, Como thrashed Lens 9-1, tying the biggest win in competition history. Manchester City beat RB Leipzig 3-2, with Erling Haaland scoring in the 78th minute, and Liverpool lost 3-2 at Fenerbahce, ending their perfect start after Vedat Muriqi scored the winner in the 79th minute.

Reporting based on coverage by Reuters, CNBC, CVS Health and UEFA.