Dow Jones, S&P 500, Nasdaq futures indicate positive open as Democrats win US midterm elections; stocks to watch

Equity market futures indicate a positive open on Wednesday, November 4, as Wall Street investors focus on the Democrats taking control of the US Congress after taking a majority against the Republicans in the US midterm elections amid mixed cues from the global market.

Investors are expected to focus on the potential for changes as the Democratic Party is set to take majority control of the House and the Senate in America for the remainder of US President Donald Trump’s tenure.

Dow Jones futures were trading more than 1.4% higher as of 4:17 pm (IST) ahead of the opening bell on Wednesday, hovering around 52,641 points, indicating positive performance potential during the trading session on November 4.

The S&P 500 futures were up 0.98%, trading at around 7,670 points as of 4:18 pm (IST), while the tech-heavy Nasdaq 100 futures were trading 0.84% higher at 28,537 points during Wednesday’s pre-market hours.

However, the overall sentiment of Democrats winning is cautious for tech and AI investors and companies, as the leaders can impose tighter regulations and scrutiny on spending or overall operations in the technology and AI sector.

Investors were in selling mode in Asia, turning away from tech and AI stocks in developed markets, powering inflows into emerging markets like India.

US stocks like SpaceX lost around 5%, Tesla lost around 5%, and Trump Media lost 6.5% during the pre-market session on November 4.

Other stocks such as McDonald’s Corp., Novo Nordisk, Qualcomm, Uber, CVS Health, and Kraft Heinz were among others which are set to be in focus of investors as the companies are set to announce their Q2 earnings.

Crude oil eases to $105/barrel

Crude oil prices remained highly volatile, with investors focusing on reports of continued efforts to bring the United States and Iran to exchange peace proposals to potentially end the West Asia conflict.

TradingView data showed that Brent crude oil prices were down 2.3% at $105.7 per bbl during the trading session on Wednesday, in comparison to $108.28 per bbl at the previous commodity market close.

Local media reports suggest that both sides have demonstrated commitment to the negotiating track and are reviewing the proposals put forward.

The latest report from Al Jazeera showed that Iran called America’s response to seven conditions for reopening the Strait of Hormuz “unconvincing”, as US President Donald Trump confirmed launching strikes on an Iranian island near the strategic waterway.

Asian markets crash

Asian equities crashed during the intraday trading session on Wednesday, November 4, due to the overall dented sentiment among investors over an AI trade reversal, resulting in a mass market selloff in equities.

Investors were also exercising selling pressure as Japan's manufacturing sector witnessed its slowest level of growth in the last seven months as cost pressure overhang impacts the nation’s economy.

However, indices recovered during the final few hours and ended in positive territory except for Japan and Singapore. Nikkei 225 ended 1.42% lower, and Singapore’s FTSE closed 0.01% lower on November 4.

Others like Hang Seng closed 1.67% higher, Shanghai closed 2.16% higher, SENSEX closed 0.5% higher, and KOSPI ended 0.62% higher on Wednesday.

How did US markets end on Tuesday?

The benchmark indices on Wall Street ended on a mixed note as investors were focused on the US midterm election polling amid a rebound in crude oil prices and elevated US Treasury yields.

Dow Jones Industrial Average ended 0.38% lower at 51,786.72 points after Tuesday’s market, in comparison to 51,983.98 points at the previous market close, according to MarketWatch data.

In contrast, the S&P 500 index closed 0.36% higher at 7,568.92 points after the trading session on Nov. 3, compared to 7,541.40 points at the previous US equity market close, as per the exchange data.

The tech-heavy Nasdaq 100 index snapped its losing streak, closing 0.68% higher at 28,180.26 points after a multi-day selloff, in comparison to 27,989.82 points at the previous Wall Street close.