US Stock Futures Drop Then Steady as Democrats Win Midterm Races, Tech Under Pressure

US stock index futures fell sharply late Tuesday as Democrats won key midterm races, then steadied or edged higher Wednesday morning as investors weighed the results. Early Tuesday night, S&P 500 futures fell more than 0.5% and Dow futures lost more than 100 points, while Nasdaq 100 futures dropped more than 1%, at one point by as much as 2.5%. By Wednesday, Fox Business reported S&P 500 futures up 0.35%, Nasdaq-100 futures up 0.16% and Dow futures up 0.84%. The Fox News Decision Desk projected Democrats would take both chambers of Congress. Reuters said Wall Street opened higher, with data center stocks sliding. Investors weighed possible changes to taxes, spending, AI, Big Tech, defense, health care, banking and crypto rules. JPMorgan analysts warned of an AI sell-off on assumed higher regulation, including possible data-center limits and higher taxes, and said healthcare and clean energy could benefit. Overseas, Japan's Nikkei fell 3.5% and Korea's Kospi fell 3%. The 10-year Treasury yield fell to 4.90%.

Right-leaning outlets split in tone. Breitbart led with a selloff, stressing Nasdaq futures down nearly 2% at 10 p.m., the Asian declines, falling Treasury yields as a possible recession worry, and fears that Democratic policies could curb AI and data centers. Fox Business instead highlighted the rebound, offering a Saxo strategist's view that a stronger Democratic showing lowers stimulus hopes, Ned Davis data that the S&P 500 rose through year-end in five of eight such midterm cycles since 1930, and a Larry Kudlow link on a presidential veto. Left-leaning NBC News called the result a "blue tsunami," quoting Evercore's Sarah Bianchi on a rebuke of President Trump's focus away from the cost of living, and noted investigation risk for CEOs close to Trump. Both sides cite tech and regulation worries; they differ on whether to stress panic, resilience or political consequences. Reuters' report largely matches the recovery theme.