U.S. equity futures moved higher Wednesday after earlier declines, as investors reassessed the market impact of Democrats gaining control of Congress in the 2026 midterm elections. The shift reflected a balance between concerns over tougher oversight in key industries and support from lower Treasury yields.
At 4:40 p.m. (Bangkok Time), contracts tracking the S&P 500 and Nasdaq-100 each advanced 0.46% and 0.36% respectively, while Dow Jones Industrial Average futures rose 0.93%. The gains marked a reversal from weaker trading earlier in the session.
The election results included Democratic victories in several Republican-leaning areas, with the party flipping at least seven Senate seats and winning House contests in districts that had favored Republicans by wide margins in 2024. Democrats also secured notable gubernatorial races and gained control of both chambers of Congress.
Early market caution centered on the possibility that Democratic control could bring closer scrutiny of high-growth sectors, including technology and artificial intelligence. Analysts on Wall Street said companies tied to the AI infrastructure boom could face pressure if lawmakers pursue tighter rules affecting data centers.
AI-related shares have already weakened recently amid worries that data-center spending may be losing momentum. In premarket trading, SpaceX declined 3.79%, Tesla fell 3.59%, and Trump Media dropped 8.07%. Among neocloud names, CoreWeave was down 3.05%, while Nebius slipped 0.75%.
AMD stood out among AI-linked stocks after reporting third-quarter results that exceeded analyst estimates for both earnings and revenue. The chipmaker’s shares initially jumped by double digits in extended trading and were last up 6.58% before the market open.
Broader investor concerns also included the reduced likelihood of additional business-friendly measures, such as tax cuts, under a Democratic-led Congress. Banking and other regulated industries were viewed as possible areas of increased oversight.
At the same time, bond markets benefited from expectations that political constraints could limit further tax reductions and spending increases. That dynamic may ease investor concern about federal borrowing, with U.S. government debt near $40 trillion.
President Donald Trump indicated he was open to working with Democrats if they were willing to cooperate.
Renewable-energy shares also gained after the results, with traders betting that Democratic control of Congress could block Trump administration policies aimed at the sector. The Invesco Solar ETF rose 3% in Robinhood trading.
