Stock Futures Erase a 2.4% Overnight Drop as Markets Digest Democrats’ Sweep of Congress

U.S. stock futures recovered from a steep overnight slide early Wednesday, Nov. 4, as investors digested midterm results that gave Democrats control of both the House and the Senate, according to Reuters. Nasdaq-100 futures had fallen as much as 2.4% and S&P 500 futures as much as 1.4% overnight before turning higher, while Treasury yields and the dollar fell.

-2.4% Nasdaq-100 futures at their overnight low (Reuters) · +0.9% S&P 500 futures at 5:25 a.m. ET (TipRanks) · 4.92% 10-year Treasury yield (Reuters) · $103.17 Brent crude (Reuters)

What the data shows

At 3:13 a.m. ET, Dow E-minis were up 237 points, or 0.46%, S&P 500 E-minis were up 0.15% and Nasdaq-100 E-minis were up 0.26%, Reuters reported. By 5:25 a.m. ET, Dow futures were up 1.28%, S&P 500 futures 0.90% and Nasdaq-100 futures 0.89%, according to TipRanks.

The 10-year Treasury yield fell 3 basis points to 4.92% after touching 4.89% overnight, and the dollar weakened broadly, with the euro up 0.4% at $1.133 and the dollar down 0.6% against the Swiss franc, Reuters reported from London. Europe’s STOXX 600 rose 0.5%. Brent crude was down 0.4% at $103.17 a barrel after hitting a four-week low the previous session, according to Reuters.

On Tuesday, the Nasdaq rose 0.83% and the S&P 500 gained 0.36%, snapping a three-day losing streak, while the Dow slipped 0.38%, weighed down by Apple, TipRanks reported. For the political results behind the move, see Democrats win control of Congress.

Tech stocks take the hit

The overnight selling was led by AI-linked stocks in Asia, while bonds and haven currencies gained, Reuters reported. Tesla and SpaceX shares fell about 4.5% to 5% in European trading, and other Big Tech names fell 0.3% to 0.9%, according to Reuters. The Nasdaq-100 entered a technical correction on Monday, Reuters noted.

Aidan Yao of the Amundi Investment Institute told Reuters the midterms were “more like a referendum on AI than a referendum on Trump.” Deborah Cunningham of Federated Hermes said the result means the federal government will be divided on most issues, according to Reuters. Our Monday report covered the oil plunge and the tech-stock slide.

Earnings to watch

AMD rose about 5% after hours on Tuesday after reporting adjusted third-quarter earnings of $2.09 a share, above the $1.95 analysts expected, on revenue up 44.6% to $13.4 billion, TipRanks reported. Uber, Qualcomm, McDonald’s, Arm Holdings and AMC are scheduled to report Wednesday, according to TipRanks.

What happens next

Futures are not the same as the cash market, and Wednesday’s open will show whether the rebound holds. The 120th Congress takes office Jan. 3, 2027. Interest rates, inflation and Fed decisions are tracked on our Federal Reserve Tracker, and broader data is on the US Economy Tracker.

Sources

• Reuters (via Yahoo Finance): US stock index futures steady as Democrats seize Congress
• Reuters (via AOL): Stocks rally, dollar dips after Democrats’ midterm sweep
• TipRanks: Stock Market Today, Nov. 4: Futures Rise After Democrats Sweep Midterm Elections