Nasdaq futures fall as chip stocks come under pressure amid U.S. midterms fallout

Nasdaq futures fell on Thursday as chip stocks faced pressure following a Democratic victory in the U.S. midterm elections. Investors analyzed the impact of the election result on artificial intelligence regulation. The Nasdaq futures contract dropped by 157 points, or 0.6%, by 05:17 ET. S&P 500 and Dow futures were mostly unchanged.

The tech-heavy Nasdaq Composite gained 1.44%, while the S&P 500 rose by 1.58%. Blue-chip Dow Jones Industrial Average increased by 3.03%. However, U.S. chipmaking stocks, including Nvidia, Advanced Micro Devices, and Intel, weakened, along with memory-chip companies SK Hynix and Samsung Electronics. Foxconn Technology Group and Taiwan Semiconductor Manufacturing Co. also fell significantly.

Analysts at Deutsche Bank and Macquarie Group expressed concerns about potential greater AI regulation and data center restrictions under Democratic control. A divided government between President Trump and Congressional Democrats might ease fiscal concerns. Oil prices rose slightly, stabilizing the U.S. dollar. Shorter-dated Treasuries remained steady. Intel's earnings report and labor market data were expected to be released on Thursday.