US Stock Futures Mixed After Midterm Elections as Qualcomm Falls and Semiconductor Shares Decline: Dow Jones, S&P, Nasdaq, Wall Street
US stock futures traded mixed on Thursday as investors assessed the results of the midterm elections, developments in the semiconductor industry and the outlook for monetary policy.
The Democratic Party’s victory in both chambers of Congress prompted market participants to reconsider the prospects for US trade policy, artificial intelligence regulation and the conflict with Iran.
Technology stocks came under pressure, with Qualcomm (NASDAQ:QCOM) declining more than 8% in after-hours trading following weaker-than-expected smartphone chip sales. Other semiconductor companies also recorded losses amid concerns about potential changes to AI-related investment and regulation.
Oil prices stabilised near $95 per barrel after declining sharply on Wednesday, while investors awaited US employment data and the Bank of England’s interest rate decision.
US Stock Futures Show Diverging Movements
At 03:03 ET (08:03 GMT), futures linked to the S&P 500 were down 15 points, or 0.2%.
Nasdaq 100 futures declined 289 points, equivalent to 1.0%, while Dow Jones futures increased 169 points, or 0.3%.
The mixed performance followed gains across Wall Street on Wednesday as investors considered the implications of the US midterm elections.
Democrats secured control of both the House of Representatives and the Senate, with the new congressional composition taking effect in January.
Some market analysts suggested that a Democratic-controlled Congress alongside Republican President Donald Trump could create legislative constraints on major policy changes.
Such an arrangement could influence the outlook for trade measures, fiscal policy and financial market regulation.
Midterm Results Prompt Reassessment of US Economic Policy
The election results led investors to evaluate the likelihood of additional tariffs, changes in government spending and potential adjustments to US foreign policy.
Analysts at Yardeni Research suggested that the new political balance could reduce the probability of further inflationary fiscal measures and encourage a diplomatic resolution to the conflict with Iran.
They also noted that slower investment in artificial intelligence infrastructure could have implications for corporate cash flow and bond markets.
According to the analysts, reduced AI-related capital expenditure could increase profits and free cash flow at major technology companies.
A decline in borrowing to finance AI infrastructure could also limit upward pressure on bond yields.
“Financial markets interpreted the Democratic electoral gains positively,” Yardeni Research analysts said.
The assessment reflected expectations that political constraints could affect the pace and scale of future policy initiatives.
Semiconductor Shares Decline Amid AI Regulatory Concerns
Semiconductor stocks declined in US extended-hours trading and across several Asian markets as investors assessed the possibility of increased regulatory scrutiny of artificial intelligence.
Nvidia (NASDAQ:NVDA) traded slightly lower after the US market close, alongside Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC).
In South Korea, SK Hynix (NASDAQ:SKHY) and Samsung Electronics (USOTC:SSNHZ) recorded declines.
Taiwanese electronics manufacturer Foxconn Technology Group (USOTC:FXCOF) fell more than 3%, while Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) declined 0.88%.
The movements followed concerns that a Democratic-controlled Congress could introduce additional oversight of AI development and associated infrastructure investment.
Analysts have identified large-scale data centre construction as one area potentially subject to increased scrutiny.
Texas Election Raises Questions About Data Centre Regulation
The election of Democrat Gina Hinojosa as governor of Texas also attracted attention from investors in the technology sector.
Texas is home to several planned large-scale data centre developments associated with artificial intelligence infrastructure.
Analysts at Macquarie Group suggested that the change in state leadership could result in more restrictive rules governing data centre construction and operation.
Such regulatory changes could influence the timing and cost of future projects.
However, the extent of any policy changes remains uncertain, and no specific new regulations were detailed in the report.
Qualcomm Shares Fall More Than 8% After Smartphone Chip Sales Miss Forecasts
Qualcomm (NASDAQ:QCOM) shares declined more than 8% in after-hours trading after the company reported smartphone chip revenue below analysts’ expectations.
Revenue from its handset chip business fell 26% to $5.14 billion in the fourth quarter.
The figure was below the $5.25 billion forecast reflected in Visible Alpha estimates cited by Reuters.
The decline in handset chip revenue offset a more favourable outlook for Qualcomm’s data centre business.
The results highlighted differences in demand between smartphone-related semiconductors and chips associated with computing infrastructure.
Smartphone Shipments Decline as Memory Costs Increase
Industry data from Counterpoint Research indicated that global smartphone shipments fell by approximately 20% during the September quarter.
The decline was partly linked to higher memory chip prices, which have increased production costs for smartphone manufacturers.
Demand for memory components used in AI data centres has contributed to price increases, affecting the cost of components used in consumer electronics.
Higher handset prices have also influenced smartphone demand.
Qualcomm Chief Executive Officer Cristiano Amon told Reuters that Android smartphone sales appeared to have reached a low point and were beginning to recover gradually.
The company nevertheless reported a substantial year-on-year decline in quarterly handset chip revenue.
Brent Crude Stabilises Near $95 After Wednesday’s Decline
Oil prices traded near $95 per barrel on Thursday after falling more than 8% during the previous session.
Brent crude futures settled Wednesday at $94.62 per barrel, down $8.98, or 8.7%.
US West Texas Intermediate crude closed at $88.12 per barrel, declining $7.97, or 8.3%.
Both benchmarks recorded their lowest closing levels since 31 August.
The declines followed the US midterm election results, which prompted expectations that a Democratic-controlled Congress could increase pressure for a negotiated resolution to the conflict with Iran.
Investors also considered whether changes in US policy could eventually ease restrictions on energy shipments through the Strait of Hormuz.
The waterway is an important route for international oil and gas transportation.
US Political Leaders Address Iran Conflict
President Donald Trump acknowledged that the conflict with Iran had contributed to the Republican Party’s electoral losses.
Vice President JD Vance also questioned the political and economic costs associated with the conflict.
The election outcome prompted speculation that Congress could seek to limit funding for military operations or encourage diplomatic negotiations.
Market participants interpreted these developments as potentially increasing the likelihood of reduced hostilities in the Middle East.
Any improvement in regional shipping conditions could affect global energy supplies and prices.
However, the timing and outcome of any diplomatic developments remain uncertain.
Bank of England Expected to Raise Interest Rates
Investors also awaited the Bank of England’s monetary policy decision on Thursday.
The central bank was expected to increase its benchmark interest rate by 25 basis points, marking its first rate increase in more than three years.
The anticipated move followed continued inflationary pressures in the United Kingdom.
Annual consumer price inflation reached 3.5% in September, its highest level in 11 months and above the Bank of England’s 2% target.
Higher energy prices associated with supply disruptions in the Middle East contributed to the increase in inflation.
Market expectations indicated that policymakers could raise rates again in 2027 if inflation remained elevated.
The decision was expected to provide further information about the central bank’s approach to inflation and economic conditions.
Market Outlook
US equity markets entered Thursday’s session with mixed futures as investors evaluated the political and economic implications of the midterm elections.
Semiconductor shares declined amid uncertainty about future AI regulation and infrastructure investment, while Qualcomm’s quarterly results highlighted lower smartphone chip demand.
Oil prices stabilised after Wednesday’s decline, reflecting changing expectations for the conflict with Iran and its potential impact on energy supplies.
Investors were also monitoring upcoming US employment figures and the Bank of England’s interest rate announcement for further indications of monetary policy developments.
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