US equity futures moved higher before the opening bell on Wednesday as market participants digested the outcome of the US midterm elections, which handed Democrats control of both the Senate and the House of Representatives. The results set the stage for a divided government in Washington and prompted investors to reassess which sectors could face new scrutiny or regulatory shifts.
Futures point to a higher open
Futures tracking the Dow Jones Industrial Average gained 1.7%, while S&P 500 futures added 0.8%. Nasdaq futures advanced 0.2%, a more modest move that nonetheless kept the technology-heavy index in positive territory.
The Democratic sweep raises the prospect of legislative friction between President Donald Trump’s administration and a Congress controlled by the opposing party. Beyond the question of gridlock, analysts flagged possible changes to regulation in healthcare, banking and cryptocurrencies.
Sectors in focus as power shifts
Technology companies could also face additional congressional probes, according to a Reuters report, and the pace of artificial intelligence data center construction may slow. Those possibilities were part of the backdrop as traders weighed how a divided government might affect corporate oversight and industry policy.
The election results were not the only item on the market’s agenda. A fresh batch of quarterly earnings also drew attention.
Earnings and economic data on deck
McDonald’s (MCD) reported higher third-quarter non-GAAP earnings and revenue, and Uber Technologies (UBER) likewise posted increases in third-quarter non-GAAP earnings and revenue.
After the closing bell, Arm (ARM) was scheduled to release its fiscal second-quarter results, and Qualcomm (QCOM) was set to report fiscal fourth-quarter earnings.
In commodities, oil prices moved lower. Front-month global benchmark North Sea Brent crude fell 1.7% to $101.8 per barrel, and US West Texas Intermediate crude dropped 1.7% to $94.44 per barrel.
On the economic front, the ADP employment report showed the US economy added 86,000 private jobs in October, matching a revised 86,000 in the prior month. The international trade in goods report for September was due at 8:30 am ET and was expected to show the deficit widening to $107.9 billion from $105.6 billion in the previous month.
Later in the morning, the S&P Global purchasing managers’ index composite final report for October was scheduled for 9:45 am ET, followed by ISM’s services data at 10:00 am ET.
