US futures are higher as dip buyers turned an overnight "blue tsunami" puke into a broad rally: Democrats swept both chambers of Congress, initially sending Nasdaq 100 futures down as much as 2.4% on fears of tighter AI regulation and a Texas data center freeze, before President Trump's conciliatory tone (he said Democrats did "a good job" and that he can work with them), AMD's blowout guide and the monetization of a pile of election hedges flipped futures solidly green; as a result the dollar is heading for its worst day since early September while gold blasts back above $4,000. As of 8:15am ET, S&P futures are 0.
9% higher at 7,665 while Nasdaq futures are down 0.2%, Russell 2000 futures jump 1.3% and Dow futures are up roughly 1.
7%, or about 870 points, as VIX tumbles 12.8% to 18.16.
Stocks rose on Tuesday ahead of the vote, with the S&P 500 snapping a three-day losing streak and semis rebounding 2.6% after an 11.6% three-session plunge.
In premarket trading, the Mag 7 is mostly higher led by Amazon, while Musk's Tesla and SpaceX bear the brunt of the blue wave; AMD (+6.3%), Super Micro (+9.2%) and Arista (+10.
9%) lead chips higher after earnings, confirming our article from last night, while solar names soar and defense stocks slide. The day's driver is politics (finally): Democrats flipped Senate seats in Texas, Ohio, Kansas, South Carolina, North Carolina, Iowa and Maine, won the governorships of Texas, Ohio and Georgia, and are on track for at least 54 Senate seats; as we explained overnight, Texas turned blue and futures turned green as the market concluded the AI fallout would mean regulation rather than cessation. Treasuries are bid with yields 3-5bps lower and the 10Y at about 4.
915% as divided government curbs the fiscal outlook and the curve flattens ahead of the 8:30am refunding announcement. The Bloomberg dollar index slides 0.5% to the lowest since Sept.
30, with the kiwi leading G10 gains and EUR/USD up 0.6%. In commodities, WTI is down about 1% near $95 as Trump played down the prospect of imminent strikes on Iran, while gold jumps 3% and silver surges almost 5%; copper is flat.
Bitcoin rises about 1% to $78,480. US economic data slate includes October ADP employment change (8:15am), September trade balance (8:30am), October final S&P Global services and composite PMIs (9:45am) and ISM services (10am). There are no Fed speakers scheduled.
The Treasury publishes its quarterly refunding announcement at 8:30am and sells $75 billion of 17-week bills at 11:30am.In premarket trading, Mag 7 stocks are mostly higher: Amazon (AMZN) +3%, Meta Platforms (META) +0.8%, Microsoft (MSFT) +1.
9%, Nvidia (NVDA) -0.1%, Alphabet (GOOGL) +0.9%, Apple (AAPL) +1.
5% while Elon Musk’s Tesla (TSLA) falls 5% as election results sharpen investor concern over the future of the Republican megadonor’s key holdings. SpaceX (SPCX), while not a member of the Magnificent Seven, drops 6%, as election results sharpen investor concern over the future of the Republican megadonor’s key holdings.Some data center and cloud computing stocks slip after Democrats made strong gains in midterm elections, clinching control of both chambers of Congress.
Gina Hinojosa is set to become Texas governor after a state-level race that Bank of America strategists had described as a “referendum on affordability versus AI data centers.” CoreWeave (CRWV), Equinix (EQIX), GE Vernova (GEV) and Oracle (ORCL) are among the decliners, while other AI-linked names are broadly higherSolar, defense and healthcare stocks are also moving on election results.Advanced Micro Devices Inc.
(AMD) gains 1% after the chipmaker gave a sales forecast that soared past analysts’ projections, a sign of buoyant demand for data center processors.Amdocs (DOX) plummets 38% after the IT services company’s outlook came in weaker than expected, reflecting a dispute with T-Mobile.Array Technologies (ARRY) gains 9% after agring to combine with Shoals Technologies (SHLS).
Block (XYZ) rises 10% after the payments company reported third-quarter earnings and revenue that inched past analysts’ expectations.CVS Health (CVS) slips 2% after the health insurer said it plans to spin off its retail pharmacy business.Duolingo (DUOL) rises 19% after the language-learning software company raised its full-year revenue and adjusted Ebitda outlook above consensus expectations.
Flywire (FLYW) gains 7% after the payments software company’s third-quarter results beat expectations and it gave an outlook that is seen as positive.Freshworks (FRSH) falls 9% after the software company’s outlook was seen as underwhelming. The company also reported third-quarter results in line with expectations, below its historical pattern of greater upside.
Navitas Semiconductor (NVTS) gains 14% after the chipmaker’s results and forecast beat expectations, prompting Rosenblatt Securities to upgrade the stock.Procore Technologies (PCOR) climbs 12% after the construction management software provider reported third-quarter revenue that topped Wall Street’s consensus.Skyworks (SWKS) slumps 10% after the company’s first-quarter revenue forecast missed the consensus estimates.
Spyre Therapeutics (SYRE) falls 4% after the biotech said it does not plan to advance SPY072 in rheumatic diseases.Super Micro (SMCI) climbs 2% after the maker of servers forecast net sales for the second quarter that beat the average analyst estimate.In other corporate news, Oracle canceled a $7 billion chip leasing deal with Tencent under pressure from the Trump administration, the FT reported, which is one way to make the China decoupling trade official.
CVS Health will break off its retail pharmacy business into a separate company and now sees FY adjusted EPS of at least $8.20 vs. a prior $7.
90-$8.10 and consensus of $8.05.
McDonald's Q3 comp sales rose 1.5% vs. est.
+1.35%, while Uber sees Q4 gross bookings of $63.25 billion to $65.
25 billion vs. est. $64.
29 billion. HP Inc. named Emma Walmsley as CEO.
Meta is making its debut in the euro bond market with a six-part offering, a day after raising $15 billion in dollars with orders for as much as $58 billion, as Big Tech keeps racing to fund trillions in AI investment. Alphabet's Google plans to spend $15 billion to expand data center and cloud operations in Malaysia. Amgen raised its sales and profit forecast for the third time this year, while Booking's Q4 outlook disappointed on softer international travel.
In M&A, Carl Icahn's CVR Energy agreed to buy two refineries and a related marketing business from Marathon Petroleum for about $4.2 billion, and NextEra and Dominion offered Virginia additional concessions on their $67 billion merger. Elsewhere, Revolut confirmed a $115 billion valuation in its secondary share sale and Blackstone raised around €13 billion for European direct lending.
The night was a rollercoaster: as results rolled in, S&P 500 futures were down as much as 1.4% and Nasdaq 100 contracts as much as 2.4% before both erased the losses, with Bloomberg's Michael Msika noting that investors "had been turning defensive and reducing positioning on tech for weeks into the elections, paving the way for the knee-jerk move lower overnight to morph into gains.
" In other words, the blue wave turned into a clearing event for bulls (for now), with the Nasdaq 100 bouncing after nearing oversold levels and testing its 200-day moving average.“It’s mostly opportunistic dip buying since we’re now past peak mid-term election uncertainty,” said Justin Lin, a strategist at Global X ETFs. “Now that we’re here, there will be optimistic buyers who are willing to pick up the pieces.
”Not everyone was so sanguine: Bank of America's Michael Hartnett had predicted a Democratic sweep would be a risk-off moment with stocks, the dollar and yields falling into year-end, warning that a blue wave signaled an “electoral shift from populist capitalism to populist socialism,” with further tax and regulation likely. Invesco's David Chao took the other side of the macr