U.S. Futures Rebound After Democratic Election Gains

Democrats’ projected control of both chambers of Congress sent U.S. stock futures sharply lower overnight, but the contracts rebounded by Wednesday morning as investors reassessed the election’s implications for policy and corporate earnings. The Fox News Decision Desk projected Democrats would control the House and Senate. Futures had fallen as results came in, with Nasdaq-100 contracts down as much as 2.4% and S&P 500 futures off 1.4%. By Wednesday morning, the declines had reversed: S&P 500 futures were up 0.35%, Nasdaq-100 futures gained 0.16% and Dow futures rose 0.84% in reported observations. The moves were snapshots during trading, not closing figures. They followed an unsettled night for markets as investors considered what a change in congressional control could mean for taxes, spending and regulation. The projected outcome leaves President Donald Trump facing an opposition-controlled Congress for the remaining two years of his term. Technology and artificial intelligence investment were central concerns for investors. Analysts said congressional scrutiny of AI companies and data-center construction could affect an industry that has attracted substantial investment....