US stock index futures steady as Democrats seize Congress
SPY•US stock index futures recovered from sharp initial declines after Democrats won control of both chambers of Congress. At 3:13 a.m. ET, Dow futures were up 0.46%, S&P 500 futures 0.15% and Nasdaq-100 futures 0.26%.
1. Futures recover
US stock index futures stabilized on Wednesday after initially falling sharply as investors assessed Democrats' victories in the midterm elections. At 3:13 a.m. ET, Dow futures were up 0.46%, S&P 500 futures 0.15% and Nasdaq-100 futures 0.26%; earlier, Nasdaq-100 futures had fallen as much as 2.4% and S&P 500 futures 1.4%.
2. Policy concerns
Democrats took control of both the Senate and House, ushering in divided government. Investors weighed the prospects of tougher regulation, higher taxes and oversight of areas including AI and cryptocurrencies. Amundi Investment Institute strategist Aidan Yao said restrictions on AI could make the US economy, inflation and monetary policy uncertain.
3. Tech shares fall
Amazon.com, Alphabet, Microsoft and Meta Platforms shares traded lower on the Tradegate platform in Europe, while SpaceX dropped more than 4%. Democrats made inroads in Texas and Georgia, states the article identifies as key for data centers. The AI trade had already been under pressure as investors questioned Big Tech's soaring AI spending and returns.
