U.S. stock futures turned higher early Wednesday, reversing earlier losses, while the dollar slid after the midterm elections, TipRanks reported. Investors are reassessing risks tied to political gridlock and possible new rules for artificial intelligence.
Key Highlights
- As of 5:25 a.m. ET Wednesday, Nasdaq 100 futures were up 0.89% and S&P 500 futures up 0.90%, TipRanks reported. Futures are not closing prices.
- The dollar index fell 0.3% to 101.4, Reuters reported. The Guardian said it hit a one-month low.
- On Tuesday, the S&P 500 rose 0.36% and the Nasdaq gained 0.83%. The Dow fell 0.38%, TipRanks reported.
- Analysts cited worries over AI regulation and gridlock in Washington.
What Moved the Dollar
The dollar fell sharply against major currencies as early results showed Democrats gaining ground, Reuters reported. The euro rose 0.5% to $1.1249, and the dollar slipped 0.7% against the yen, to 157.63. Sterling gained 0.4% to $1.3460.
Axel Rudolph, chief technical analyst at IG, said, “The dollar is under pressure as investors reassess the political outlook,” according to The Guardian.
Carol Kong, a currency strategist at Commonwealth Bank of Australia, told Reuters a Democratic sweep would limit government spending over the rest of President Donald Trump’s term. She said the dollar could fall further.
How Stocks Fared
The S&P 500 ended a three-day losing streak on Tuesday, according to TipRanks. Apple fell nearly 2% on Tuesday, weighing on the Dow.
AMD rose about 5% after hours after beating third-quarter estimates, TipRanks said. Adjusted earnings were $2.09 a share, against $1.95 expected.
Earlier in the day, U.S. futures pointed lower, then recovered, The Guardian reported. Asian shares fell, with Tokyo’s Nikkei 225 down 2.85%, Euronews reported.
Why Investors Are Reassessing Risk
Reports pointed to two concerns. One is gridlock between a Democratic Congress and the Trump administration. The other is tighter regulation of artificial intelligence.
Texas Democrat Gina Hinojosa won the governor’s race on a pledge to pause data center construction, Yahoo Finance reported. Investors worry that curbs could slow AI spending, TipRanks said.
Chris Weston of Pepperstone told AFP that “a narrow blue wave may be largely priced in.” He said a larger win “could force markets to rethink” Trump’s remaining agenda, per Euronews.
Moh Siong Sim of OCBC told Reuters federal AI legislation would still be hard to pass given Trump’s veto power.
For background on the campaign issues, see our report on the 2026 midterm elections.
Bonds, Oil and What Comes Next
The 10-year Treasury yield fell to about 4.92%, TipRanks and The Guardian reported. Euronews later said it climbed to about 4.945%, so yields moved through the session.
Oil was near $103 a barrel, according to Reuters. TipRanks said traders were watching efforts to end the U.S.-Israeli war with Iran.
The Bank of England decides on rates Thursday and is expected to raise them for the first time since August 2023, Reuters reported. Earnings from Qualcomm, Uber, McDonald’s and Arm are due Wednesday, TipRanks said.
What Remains Uncertain
Reports differ in places. Some say Democrats won both chambers, while Euronews, citing AP, said they won the Senate and were on course for the House. We have not independently verified the results.
Futures can reverse before the opening bell. Yahoo Finance noted midterms tend to move markets little over the long term. This is not investment advice.
Sources: TipRanks (Nov. 4); Reuters via Yahoo Finance (Nov. 4); The Guardian via AOL (Nov. 4); Euronews (Nov. 4); Yahoo Finance (Nov. 4).