S&P 500 futures rise 0.2% after Democrats win both chambers of Congress

Key Facts

S&P 500 futures rose 0.2% in trading on Wednesday, November 4, after Democrats won majorities in both chambers of Congress in the US midterm elections, according to the Associated Press. The move followed losses of as much as 2% in US futures overnight before they returned to positive territory, according to Reuters. Dow Jones Industrial Average futures rose 0.4%, according to the Associated Press. The win puts the Democratic Party in control of both chambers, as markets assess what that could mean for spending, regulation and economic policy in Washington. The futures advance was limited compared with the overnight decline and came amid mixed moves across stocks, bonds and currencies.

In the bond market, Treasuries rose as investors expected political gridlock in Washington to lead to lower government spending, according to a Reuters report. The yield on 10-year US Treasuries fell 3 basis points to 4.92% on November 4, after dropping to 4.89% overnight, the largest decline cited in the report at 6 basis points. The yield move reflects the debt market's response to investors' assessments of the fiscal policy outlook after Democrats' win. The report also said the prospect of tighter regulation of the artificial intelligence sector could slow growth and reduce the need for rate hikes. In currency markets, the dollar weakened broadly, while the euro rose 0.4% to $1.133 and sterling gained 0.5% to $1.348, according to Reuters.

The new majority's ability to change policy in the near term remains constrained by institutional limits, according to a Capital Economics analyst cited by the Associated Press. The analyst said Democratic gains "do not change the near-term policy outlook much," noting that the party lacks a Senate majority capable of breaking a filibuster and that President Donald Trump has the power to veto legislation. These limits constrain how quickly legislative changes can pass, even with Democrats in control of both chambers. Investors, meanwhile, expect greater scrutiny of the artificial intelligence sector from a Democratic Congress, according to Reuters. AI stocks in Asia led the initial equity decline, while bonds and safe-haven currencies, including the Swiss franc, rose.

The political shifts came as concerns about technology-company valuations remained in focus in markets. The Associated Press said waves of technology-stock selling were linked to investor concern that shares tied to artificial intelligence had become too expensive. In early trading on Wednesday, France's CAC 40 rose 0.4%, while Japan's Nikkei 225 fell 1.4%, according to the agency. Before the election result emerged, the S&P 500 had risen 0.4% in Tuesday's session, November 3, to 7,568.92 points, despite declines in a majority of its listed stocks. EL7 data show the index closed at the same level on November 3, compared with a close of 7,541.4 points on November 2.

In the labor market, US job openings totaled 7.523 million in September 2026, compared with 7.190 million in August, according to the Bureau of Labor Statistics release published on November 3. The 7.523 million reading refers to September; the release date marks when the data were published and does not change the period they measure. The Associated Press reported that total hiring rose in September while layoffs declined, with the largest increase in openings in professional and business services. These figures add economic context to market moves alongside investors' reassessment of the election result's implications. The Bureau of Labor Statistics is scheduled to publish its October Employment Situation report on November 6, according to the bureau's calendar.