Decision Desk HQ projected Democrats to win control of the House, while control of the Senate remained uncertain. S&P 500 futures fell 1.1% and Nasdaq futures dropped 2% as investors weighed possible regulatory scrutiny and legislative gridlock.
Decision Desk HQ projected Democrats to win the House of Representatives in Tuesday’s midterm elections. The result was widely expected, while control of the Senate remained in the balance. Republicans had controlled both chambers during the first two years of President Donald Trump’s second term.
Stock index futures fell on Tuesday evening, with S&P 500 futures down 1.1% and Nasdaq futures off 2%. The dollar index slipped 0.4% to a one-month low of 101.30. Investors were weighing the potential for tougher oversight in areas including AI, as well as legislative gridlock that could complicate the fiscal outlook.
A Democratic-led Congress could increase scrutiny of AI companies, including as public opposition to data centers grows; analysts cited in the article saw slim chances of legislation that would severely undermine the data-center buildout but expected investigations into the technology sector. Investors were also watching the potential for stalled budget negotiations. Deutsche Bank data cited in the article showed the S&P 500 was higher 12 months after Election Day in all 20 midterm years since 1946, with an average gain of 14.4%.
