U.S. stock futures rose Wednesday after Democrats won control of both chambers of Congress, with Dow futures jumping 724 points as investors reconsidered the chance of political stalemate and changing policy priorities.
The rise came after a sharp drop overnight. Traders had reacted to the unexpectedly large Democratic victories. They worried that a new Congress might look more closely at artificial-intelligence companies and data-center construction.
By early Wednesday, Dow futures were up 1.4%, while S&P 500 and Nasdaq-100 futures were each up about 1%, according to a market update. Investors also seemed to take some comfort from President Donald Trump’s remarks that he would accept the result and work with Democrats. Uncertainty about future policy remained.
Strong quarterly results from chipmaker AMD gave technology shares a separate boost. The results helped the market recover from its initial drop. Still, the market reaction was uneven.
Investors weighed possible government rules for AI against the chance that a divided government could limit major policy changes. Healthcare and clean-energy stocks also drew attention as traders considered which industries might benefit from the election result.