Traders work at the New York Stock Exchange (NYSE) in New York City, USA, November 2, 2026. Brendan Mcdermid | ReutersStock futures fell as traders speculated that Democrats were headed for majority control of Congress and some key gubernatorial victories in the 2026 US midterm elections. Futures linked to the S&P 500 traded 1.3% lower, while Nasdaq-100 futures lost 2.3%. Futures linked to the Dow Jones Industrial Average fell 449 points, or 0.9%. Kalshi’s odds of Democratic control of the Senate rose to over 99%, showing that traders were increasingly betting on a big night for Democrats. The odds of Democrats gaining control of the House, which was largely expected, increased to 99% for Democrats. CNBC polling station projects Democrats will win the U.S. House of Representatives, while four Republican-controlled seats in the Senate are leaning toward a Democratic swing. Texas Democratic gubernatorial candidate Gina Hinojosa, who has promised a moratorium on data centers in the key tech hub, leads Republican incumbent Greg Abbott with more than half the vote. The development of artificial intelligence could come under pressure, according to some on Wall Street. Investors fear that a big Democratic victory could mean more restrictions on data centers across the country. AI-linked stocks have already retreated in recent weeks on concerns about slowing data center spending. Shares of big tech companies Microsoft, Amazon and Nvidia were trading lower in extended trading. Subprime data center play CoreWeave was down 6% in overnight trading on Robinhood. Elon Musk’s SpaceX also lost 6% on Robinhood. Stocks “trended lower as Democrats looked more likely to win the House and most likely the Senate,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial. “I think it will be more interesting how the governorships go,” Saglimbene added. “If you get some governorships that are Democrats, what does that mean for data center construction, which has already seen a lot of skepticism in the last two weeks in terms of hyperscaler capital spending?” Election nights have often seen wild swings in the markets. Many investors also believe that any market movement from this election would be short-lived. AMD shares initially rose double digits in post-market action after the company, a key player in AI trading, reported third-quarter earnings and revenue that topped analyst expectations. The stock last rose about 3% as stock market futures gave up gains. In the broader market, investors believe a blue wave would also be a headwind, likely ruling out any more business-friendly policies, such as tax breaks, and possibly increasing scrutiny on industries such as banking. Renewable energy stocks, such as solar energy, traded higher in the postal market on speculation that a Democratic majority in Congress would stop President Donald Trump’s policies adopted against the industry. The Invesco Solar ETF rose 3.5% in Robinhood trading. As stock futures fell into the red, Treasury yields fell, with the 10-year Treasury yield falling more than 4 basis points to 4.904%. Futures on the Cboe Volatility Index Fear Gauge rose, topping 20, as investors braced for a pullback. “Now all eyes are turning to the president and the reaction we can get from him,” said Jay Woods, chief market strategist at Freedom Capital Markets. “Will there be disputed elections, will there be more uncertainty in the ranks?” “That’s where the market could really get irritated,” he said.
