US stock futures were mixed on Wednesday as investors evaluated the implications of a Democratic sweep in Congress. S&P 500 futures slipped 0.1% and Nasdaq 100 futures fell 0.3%, while Dow Jones futures gained about 100 points. Futures pared earlier losses after an initial drop, amid indications that some investors were buying the dip.
Democrats secured control of both the Senate and the House in the midterm elections. The outcome raises the likelihood of tighter regulatory scrutiny, particularly on artificial intelligence, and is also viewed as reducing the scope for additional tax cuts and expansive government spending.
Large-cap technology and growth stocks were broadly weaker in premarket trading, with declines in Nvidia (-0.3%), Apple (-0.6%), Microsoft (-0.9%), Alphabet (-0.5%), Amazon (-0.9%) and Meta (-0.5%). Tesla (-1.8%) and SpaceX (-1.8%) also traded lower. In contrast, AMD surged more than 5% after posting earnings and revenue that beat expectations.
