US Stock Futures Rise as Democrats Win Congress and AMD Shares Surge on AI Growth Outlook: Dow Jones, S&P, Nasdaq, Wall Street
US stock futures advanced on Wednesday as investors assessed the implications of Democratic gains in the midterm elections, while stronger-than-expected growth expectations from Advanced Micro Devices supported technology shares.
The election results indicated that Democrats had secured control of both chambers of Congress, raising questions about future US policy on artificial intelligence, trade and military operations in the Middle East.
Meanwhile, Advanced Micro Devices (NASDAQ:AMD) shares surged more than 7% in after-hours trading after the semiconductor manufacturer forecast strong revenue growth for 2027, driven by demand for data centre processors.
Wall Street Futures Advance Ahead of Opening Bell
US equity futures moved higher during Wednesday’s early trading session.
At 03:37 ET (08:37 GMT), S&P 500 futures had gained 15 points, or 0.2%, while Nasdaq 100 futures rose 64 points, also representing an increase of 0.2%.
Dow Jones Industrial Average futures advanced 237 points, or 0.5%.
The gains followed a mixed session on Wall Street, when the S&P 500 and Nasdaq Composite closed higher while the Dow Jones declined.
Investor sentiment had improved following signs of potential diplomatic progress in the conflict involving Iran, which helped reduce oil prices and supported equities.
However, uncertainty surrounding the Middle East and the sustainability of substantial AI infrastructure investment continued to influence market activity.
Recent US economic indicators also suggested resilient underlying conditions, with job openings reaching a four-month high and factory orders exceeding expectations.
Democrats Secure Congressional Majorities in US Midterm Elections
The Democratic Party secured majorities in both the House of Representatives and Senate following Tuesday’s midterm elections, changing the political balance in Washington.
The results followed voter concerns over living costs, the conflict involving Iran and the economic implications of artificial intelligence.
Democratic gains extended into several areas traditionally supportive of President Donald Trump’s Republican Party.
When the new Congress convenes in January, Democratic control of both chambers will give the party greater influence over legislation, government spending and congressional oversight.
However, President Trump will retain his constitutional veto power, meaning legislation approved by Congress could still be rejected by the White House.
AI Regulation Concerns Weigh on Technology Sentiment
Investors are assessing whether the new congressional balance could lead to stricter regulation of artificial intelligence and potentially slower investment in data centre infrastructure.
Concerns about AI-related employment disruption and the rapid expansion of large computing facilities featured in the election debate.
Technology shares initially came under pressure in Asian trading, while US stock futures also weakened before recovering.
Analysts at ING attributed the initial reaction to uncertainty over whether Democratic control of Congress could slow AI capital expenditure.
They also suggested that the reversal of early market declines reflected the fact that the newly elected Congress will not take office until January.
The longer-term implications for AI regulation and investment remain uncertain and will depend on future legislative proposals.
AMD Shares Jump More Than 7% on Strong Data Centre Outlook
Advanced Micro Devices (NASDAQ:AMD) shares rose more than 7% in extended trading after the company outlined stronger-than-expected revenue growth expectations for 2027.
The semiconductor manufacturer benefited from rising demand for processors used in artificial intelligence and data centre infrastructure.
Chief Executive Lisa Su indicated that overall revenue could increase by more than 80% in 2027, exceeding analysts’ expectations for growth of approximately 77%.
According to Su, chips designed for data centres are expected to account for approximately 80% of total sales and represent the principal source of future revenue and earnings growth.
The announcement also supported shares of other semiconductor companies, including Nvidia (NASDAQ:NVDA), Intel (NASDAQ:INTC) and Broadcom (NASDAQ:AVGO), in after-hours trading.
AMD Reports Significant Non-Cash Charge
Despite the positive growth outlook, AMD’s third-quarter earnings were affected by a non-cash charge exceeding $1 billion.
The charge was associated with arrangements under which the company offered warrants to acquire future equity stakes to OpenAI and Meta Platforms (NASDAQ:META).
The agreements are linked to commitments by the technology companies to purchase AMD processors.
The arrangements form part of AMD’s efforts to expand its position in the market for AI computing infrastructure.
Investors will also be monitoring upcoming quarterly results from Arm Holdings (NASDAQ:ARM) and Qualcomm (NASDAQ:QCOM), both scheduled to report on Wednesday.
US Services Sector Data in Focus
Attention will also turn to the latest Institute for Supply Management survey of US services activity.
The ISM non-manufacturing purchasing managers’ index is expected to ease slightly to 54.8 in October from 54.9 in September.
A reading above 50 indicates expansion in the sector, which accounts for more than two-thirds of US economic activity.
The report will provide further insight into demand conditions and the outlook for economic growth.
Earlier manufacturing data indicated improving activity supported by domestic demand, although elevated factory prices continued to highlight inflationary pressures.
Oil Prices Rise Amid Uncertainty Over Iran Negotiations
Crude oil prices advanced on Wednesday as investors assessed the potential consequences of the US election results for Washington’s policy towards Iran.
At 01:57 ET (06:57 GMT), January Brent crude futures increased 0.6% to $104.20 per barrel.
US West Texas Intermediate crude futures rose 0.5% to $96.59 per barrel.
The gains reflected uncertainty over whether the Trump administration would pursue further military action or seek a negotiated resolution to the conflict.
Earlier in the week, US forces conducted strikes against Iranian air defence installations on Qeshm Island, near the Strait of Hormuz.
American officials described the operations as defensive measures responding to threats against commercial shipping.
President Trump subsequently indicated that Washington had no immediate plans for additional strikes.
Diplomatic Talks Continue Without Agreement
Diplomatic efforts involving the United States and Iran remain ongoing, although significant differences between the two sides have yet to be resolved.
According to Bloomberg, citing a diplomat familiar with the discussions, Washington and Tehran are reviewing proposals from mediators aimed at preventing a renewed escalation of hostilities.
Qatar has intensified its mediation efforts, with both countries continuing to exchange proposals.
However, Iran has expressed dissatisfaction with the US response to its conditions for reopening the Strait of Hormuz.
A senior Iranian official also indicated to Reuters that the two countries remained far from reaching an agreement.
The continuing uncertainty has maintained concerns about the security of commercial shipping and energy supplies through the Persian Gulf.
Market Outlook
US financial markets face a combination of political developments, corporate earnings and economic data that could influence trading in the coming sessions.
Democratic control of Congress raises questions about the future direction of AI regulation, fiscal policy and US involvement in the Middle East.
At the same time, AMD’s stronger growth outlook has provided support for semiconductor shares and investor confidence in demand for AI infrastructure.
Upcoming technology earnings, US services sector data and developments in negotiations with Iran will remain important factors for investors assessing the direction of equities and energy prices.
Advanced Micro Devices stock price
Nvidia stock price
Intel stock price
Broadcom stock price
Meta stock price