MarketWatch: Nasdaq-100 futures hit lowest level since July as results favor Democrats
Key Facts
The report described the move in U.S. futures as limited that evening, as investors awaited a clearer direction from the vote. The move followed a positive session on Wall Street, during which a rebound in technology stocks helped stabilize futures. The sector's stocks had returned to gains after several sessions of sharp losses. The election watch thus coincided with technology's attempt to regain some momentum, as investors' bets on the sector's trajectory remained under scrutiny.
In Tuesday's session, the Nasdaq-100 rose to 28,180.26 points, compared with 27,989.82 points in the previous session, according to EL7 data, while the Nasdaq-100 futures contract series also closed at 28,305.75 points. The Associated Press reported that the S&P 500 gained 27.52 points to 7,568.92 points, while Nasdaq stocks rose and Dow Jones stocks fell. The agency pointed to strength among major companies linked to AI, alongside continued concern about the sector's stock valuations. Technology stocks had previously fluctuated amid investors' concerns over their high valuations, the agency said. These indicators place the technology rebound in the context of a session supported by companies linked to AI, even as valuation concerns remained present in trading.
Markets tracked the election results amid issues that cross party lines, including the rising cost of living and AI, according to the Associated Press. The agency reported that investors considered the possibility that a sweeping Democratic victory could lead to tighter regulation and restrictions on AI development. It said President Donald Trump would retain veto power, even if the balance of power in Congress changed. It also said a Democratic majority could give the party a means to block Trump's agenda during the final two years of his term. These possibilities link investors' interest in the vote to policy and regulatory paths, particularly what they could mean for technology and AI companies.
Concerns about spending on AI and cautious guidance on future earnings from major technology companies were among the factors that weighed on Nasdaq futures in an earlier move, according to CME Group. The group said these concerns led participants to question technology stock valuations. In the same move, E-mini S&P 500 futures fell 0.5%, while E-mini Dow Jones futures gained as liquidity shifted between sectors. An Investing.com report said equity futures were steady Tuesday evening after the technology rebound, and also noted a sharp drop in oil prices during the week as signs emerged of diplomatic progress between the United States and Iran. This backdrop shows that the election watch took place alongside sector-specific factors and moves in other markets, without overshadowing the impact of the previous positive stock session.
Historical data cited by the Associated Press provides additional context for investors' election watch: Brooke Wimer, an analyst at Edward Jones, said the S&P 500 posted a positive return in every six-month period following midterm elections since 1970. This comparison concerns the periods after elections and does not describe the outcome of the current vote or market moves in Tuesday's session. In the near term, the Bureau of Labor Statistics scheduled the release of its October 2026 Employment Situation report for November 6 at 08:30 a.m. Eastern Time. The agency also listed October Consumer Price Index data on its calendar for November 10 at 08:30 a.m. Eastern Time. These are the next two economic releases listed on the agency's calendar after election night.