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Futures on the Nasdaq-100, the index behind the Invesco QQQ Trust (QQQ), fell as much as 2.4% after Democrats won control of both chambers of Congress, according to Reuters.
Strategists cited concern that a Democratic Congress could bring tighter regulatory scrutiny of AI and Big Tech, including data center projects in Texas.
The dollar index fell 0.37% to a one-month low of 101.34 as the 10-year Treasury yield dropped to 4.906%, while stock futures turned higher by 3:13 a.m. ET, per Reuters.
Gotrade News - US stock index futures tumbled and the dollar fell after Democrats won control of both chambers of Congress in Tuesday's midterm elections, with AI stocks leading the selloff. Nasdaq-100 futures dropped as much as 2.4% before turning higher by 3:13 a.m. ET on Wednesday, according to Reuters.
In a report published at 11:57 p.m. ET on Tuesday, Fox Business said S&P 500 futures had fallen 1.3%, Nasdaq-100 futures had dropped 2.2% and futures on the Dow Jones Industrial Average had slid 0.8%, as the Fox News Decision Desk projected that Democrats will control the House and gain control of the Senate. Prediction markets had increasingly pointed to Democratic control of both chambers, with more than $1.48 billion wagered on the midterms, Fox Business reported.
Regular-session close on November 3, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against the closing price on Nasdaq.com.
Why Did Nasdaq Futures Fall After the Midterms?
Investors priced in the risk of tighter regulation for AI and Big Tech under a Democratic Congress. "Markets appear to be pricing in the possibility of a stronger-than-expected Democratic showing," Charu Chanana, chief investment strategist at Saxo in Singapore, told Reuters, as cited by Fox Business, adding that investors may be concerned about greater regulatory scrutiny of AI and Big Tech.
Prashant Newnaha, senior rates strategist at TD Securities, pointed to "tighter regulatory scrutiny of technology and AI companies" along with a higher likelihood of political gridlock, as reported by Reuters. The tech-heavy Nasdaq-100 had already confirmed a technical correction on Monday, and shares of Amazon, Alphabet, Microsoft and Meta Platforms were trading lower on the Tradegate platform in Europe, per Reuters.
"The significance of these midterm elections is more like a referendum on AI than a referendum on Trump."
Aidan Yao, senior investment strategist for Asia, Amundi Investment Institute (via Reuters)
Texas Senate Win Puts AI Data Centers in Focus
Democrats won Senate races in South Carolina, Texas and Ohio, according to Reuters. Kim Seok-hwan, an analyst at Mirae Asset Securities, said the Democrats' victory in Texas is likely to weigh on chip stocks. "If Texas declares a moratorium on data centres, as New York did, projects could face further delays," he said.
In Asia, chipmakers Samsung, SK Hynix and TSMC slid sharply before cutting losses, Reuters reported.
Dollar Hits One-Month Low as 10-Year Yield Falls to 4.906%
The yield on the benchmark US 10-year Treasury note fell 6 basis points to 4.906%, pushing the dollar sharply lower, according to Reuters. The dollar index fell 0.37% to 101.34, a one-month low, while the euro rose 0.5% to $1.1249.
Futures Turn Higher by 3:13 a.m. ET as Dip Buyers Step In
Nasdaq futures skidded more than 2% before cutting losses to trade down 0.5%, and S&P 500 futures were last down 0.35% in an earlier Reuters reading. "Looks like investors are buying the dip after the initial knee-jerk selloff," Chanana said, as reported by Reuters.
By 3:13 a.m. ET, Dow E-minis were up 237 points, or 0.46%, S&P 500 E-minis were up 11.25 points, or 0.15%, and Nasdaq 100 E-minis were up 72.75 points, or 0.26%, according to Reuters.
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M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms. His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
Hendrie Saputra holds a Master of Business Administration (MBA) with a concentration in Business Risk & Finance, along with professional experience in finance, marketing, and project management. He is experienced in analyzing market data and developing research-driven business strategies.
