US stock futures dip as investors await midterm election results
Democrats are favoured to capture the House as both parties remain locked in a state-by-state Senate battle, leaving investors and markets on edge.
US stock futures experienced a decline as investors prepared for the outcomes of the US midterm elections, with a particular focus on whether Democrats could take control of Congress from President Donald Trump's Republicans. The focus of the race was on whether Democrats could gain control of the House, with both parties fiercely competing in state-by-state battles for the Senate.
Chris Weston, head of research at Pepperstone, emphasized that the difference between a narrow Democratic majority and a commanding victory was crucial for traders. A narrow blue wave may already be priced in, according to Weston. In the Senate, at least nine races were seen as competitive, with Democrats securing the first of 35 seats up for grabs on Tuesday. US Senator Mark Warner was set to win reelection in Virginia.
The market reaction could be influenced more by the decisive manner in which Democrats won, and whether the results deviated significantly from expectations, rather than who ultimately won the Congress. S&P 500 futures fell by 0.5%, while Nasdaq futures dropped by 0.9%.
Asian markets saw a modest increase as beaten-down tech stocks regained favor, with AMD's strong results alleviating concerns about the sustainability of the AI trade. MSCI's Asia-Pacific index outside Japan climbed by 0.4%, led by South Korean stocks, which surged over 2% in early trading. However, Japan's Nikkei slipped by 1.5% after returning from a holiday.
AMD forecast faster-than-expected growth in 2027, driven by data-center sales and its multibillion-dollar challenge to Nvidia. This forecast and its Q3 results provided a stark contrast to mounting fears that the AI boom might be losing momentum, easing investor concerns following Intel's weak outlook. Oil prices were volatile on Wednesday, after sliding to a four-week low the previous day, as investors weighed the outcomes of peace talks in Ukraine and Iran against the risk of further supply disruptions due to recent attacks in both conflicts.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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