Stock Futures Rebound From Overnight Slide as Wall Street Bets on Gridlock After Democrats’ Midterm Sweep

NEW YORK, Nov. 4 (TodayViralUSA) — U.S. stock futures reversed steep overnight losses early Wednesday as investors digested the Democrats’ sweeping midterm victories, with renewable energy and health care shares rallying while Elon Musk’s companies and AI infrastructure names came under pressure.

Futures tied to the Dow Jones Industrial Average jumped 724 points, or 1.4%, in early-morning trading, and S&P 500 and Nasdaq-100 futures were both about 1% higher, CNBC reported. Hours earlier, as Democrats closed in on control of both chambers, Nasdaq-100 futures had fallen as much as 2.4% and S&P 500 futures as much as 1.4%, according to Reuters. Nasdaq-100 futures touched their lowest level since July 30 before rebounding more than 900 points.

Why the market turned

Strategists said concerns eased after President Donald Trump signaled he would not challenge the results. “I think we’ll work with the Democrats, and we’ll get along very well with them,” Trump told The Wall Street Journal.

“Markets like gridlock, they don’t like a party with too much power,” Andrew Slimmon of Morgan Stanley Investment Management told CNBC. He added that if the result increased pressure to end the conflict in the Middle East, oil prices could fall, which would help ease inflation.

History is also on investors’ side. The S&P 500 has risen in the year after each of the last 11 midterm elections from 1982 through 2022, gaining 13.7% on average, according to a CNBC analysis.

Winners and losers

Renewable energy stocks surged in premarket trading on expectations of a policy shift. First Solar rose 8.5%, Plug Power 10.6% and Sunrun 8.6%, CNBC said. Health insurers and hospital operators also climbed, with Molina Healthcare up 6.3%, Centene about 5% and HCA Healthcare about 7%.

The so-called Musk trade went the other way. SpaceX and Tesla each fell nearly 5% after Democrats won both the Senate race and the governor’s race in Texas, where both companies are based. Investors had watched the Texas governor’s race closely because the state accounts for about 27% of U.S. data center capacity, according to Wells Fargo estimates, and Democrat Gina Hinojosa, who defeated Gov. Greg Abbott, has called for a moratorium on new data centers. Neocloud operators CoreWeave and Nebius also slipped, as did defense and prison stocks.

Big Tech held up better. Amazon, Microsoft and Nvidia edged higher before the bell, while AMD rose about 6% after its record quarterly results.

Safe havens climb

Gold jumped nearly 3% to about $4,043 an ounce and silver gained more than 4%, while the dollar index slipped 0.4% and the 10-year Treasury yield eased to about 4.93%. Overseas, Japan’s Nikkei 225 closed 1.4% lower after falling more than 4% at one point, while Europe’s Stoxx 600 opened higher.