Key Notes
- Dow futures turned positive while S&P 500 and Nasdaq futures pared their overnight declines after the midterm elections.
- Democrats won control of both chambers of Congress, setting up divided government for the remainder of Trump’s term.
- Investors are assessing potential data-center restrictions alongside company earnings, borrowing costs and upcoming economic data.
US stock futures recovered from their overnight lows on November 4 after Democrats won control of both chambers of Congress, with Dow futures moving into positive territory as investors reassessed the election’s implications for corporate profits and policy.
In CNBC’s market update, updated at 08:01 UTC, Dow futures rose 89 points, or 0.18%. S&P 500 futures were down 0.14% and Nasdaq-100 futures slipped 0.22%, both well above their overnight lows. The figures describe futures trading before the regular US stock-market session.
Buyers Return After the Overnight Selloff
The recovery followed a sharper retreat as election returns strengthened the prospect of a Democratic sweep. Earlier, S&P 500 futures were down about 1.1% and Nasdaq futures had lost 2%, Reuters reported. The subsequent improvement narrowed those declines substantially.
The Associated Press called Democratic control of the House and Senate. The result sets up a divided federal government for the remainder of President Donald Trump’s term, making negotiations over legislation, spending and oversight more consequential.
As we previously reported, the election was one of several tests facing markets this week, alongside corporate earnings and Friday’s employment report. The futures recovery shows buyers responding to lower prices, while leaving the durability of that demand for the cash session to establish.
AI Infrastructure Remains a Policy Flashpoint
Technology investors are weighing the possibility of tighter restrictions on data-center development. In Texas, Democrat Gina Hinojosa defeated Republican Governor Greg Abbott after campaigning for a moratorium on data centers. A campaign pledge, however, is separate from an enacted restriction and its eventual scope.
Congressional control also has limits. Strategists quoted by Reuters noted that Trump retains influence over trade, tariffs, foreign policy and existing regulation. Democrats would need a two-thirds majority to override a presidential veto, making a sweeping legislative reversal harder than a simple change in chamber control might suggest.
Earnings continue to provide a separate test of demand. Advanced Micro Devices (Nasdaq: AMD) reported $13.38 billion in third-quarter revenue, up 45%, and forecast about $17 billion for the fourth quarter. Its earnings release showed data-center revenue nearly doubling. We reported on those results Tuesday.
Bonds and the Dollar Show a Broader Repricing
The election reaction extended beyond stocks. CNBC’s morning coverage showed the dollar index down about 0.39%, while the 10-year Treasury yield was around 4.93%, roughly one basis point lower. Lower yields mean higher bond prices.
For equities, the immediate question is whether the recovery broadens after the opening bell. Election results change the political setting, but company guidance, financing costs and the next economic releases will help determine whether the overnight rebound develops into sustained buying.
