Dow futures fall 0.6% as voting begins in US midterm elections
Key Facts
Dow futures fell 0.6% in early trading on Tuesday, November 3, as investors awaited the results of the US midterm elections, according to the Associated Press. S&P 500 futures fell 0.3% over the same period, signaling a weaker open for US stocks. Voting was scheduled for Tuesday, and its results could affect control of Congress and key governorships. The agency said the outcome could reshape President Donald Trump's final two years in the White House. The elections came as technology stocks were under pressure, while investors were also preparing to track US labor-market and economic indicators.
The previous session's performance highlighted divergences among US indexes ahead of the vote. On Monday, November 2, the Dow Jones rose 0.4%, while the Nasdaq Composite fell 1.1%, according to the Associated Press. The S&P 500 also dropped 0.5% after erasing gains of 1.1% earlier in the session. The agency reported that most stocks in the index advanced, benefiting from a recent 7.6% drop in Brent crude. Crude closed at $104.77 a barrel on November 2, amid uncertainty over the war with Iran. The Dow closed at 51983.98 points in the same session, according to EL7 data.
Technology companies' results and investor concerns about them were in the background of trading. Apple reported quarterly revenue of $114.5 billion in its fiscal fourth quarter ended September 26, up 12% year over year, with a gross margin of 47.9%. Diluted earnings per share were $2.10, up 14% annually; the figure included a positive impact of $0.05 per share from tariff refunds. Profit margins and costs raised concerns about the stock, despite quarterly results beating expectations, according to a Reuters report published via Investing.com. Apple shares closed at $338.32 on November 2, according to EL7 data.
Palantir also posted strong quarterly growth, but that did not prevent its shares from falling in extended trading amid other concerns, according to the same report. The company reported revenue of $2.31 billion in the third quarter of 2026, up 96% year over year and 20% from the previous quarter. US revenue rose 119% annually to $1.94 billion, and US commercial revenue exceeded US government revenue for the first time. Net revenue retention was 165%, according to the company's investor update. The Reuters report described concerns about AI investment and future guidance as factors affecting technology-stock valuations, alongside concerns about Apple's margins.
The elections add a political factor to the assessment of technology companies, as their outcome could affect the outlook for AI regulation. A sweeping Democratic victory is expected to bring greater scrutiny of data centers, the Reuters report said. In contrast, earnings growth supported the broader picture: citing LSEG IBES data available the previous Friday, the report said S&P 500 companies' earnings were on track to grow 31.6% in the third quarter. These estimates come as corporate results and concerns about AI spending remain central to trading in technology shares. The election result had not yet emerged at the time of the report.
Investors were also awaiting the September Job Openings and Labor Turnover report that day, at 10:00 a.m. Eastern Time on November 3, according to the Bureau of Labor Statistics. The Institute for Supply Management's services index is due on November 4, according to the schedule available in the guides. The October jobs report is then due on November 6 at 08:30 a.m. Eastern Time. The October Consumer Price Index follows on November 10 at the same time, according to the bureau's schedule. These releases are expected to provide additional indicators on the labor market and prices after Election Day. At its October 28 meeting, the Federal Reserve kept its target interest-rate range at 3-3/4 to 4%, in a 10–2 vote, with the two dissenting members favoring a quarter-percentage-point increase.