U.S. Futures Rally After Democrats Take Congress; AMD Pops After Earnings

December S&P 500 E-Mini futures (ESZ26) are up +1.05%, and December Nasdaq 100 E-Mini futures (NQZ26) are up +1.01% this morning, reversing steep early losses as investors digested the Democrats’ sweeping victory in the U.S. midterm elections.

Democrats won control of both the Senate and the House of Representatives, notching victories in Republican strongholds across the country. They flipped at least seven Senate seats and won House races in districts that Republicans had comfortably carried in 2024. The results leave U.S. President Donald Trump facing significantly greater constraints than during the first two years of his second term. Mr. Trump acknowledged in an interview with The Wall Street Journal that the war in Iran had played a role in Republican losses, but said he had no regrets about the conflict. He also said he would work with Democrats while reserving the right to exercise his presidential veto.

Despite investor concerns that Democratic control of Congress could hamper AI expansion, chip and AI infrastructure stocks climbed in pre-market trading as strong earnings from Advanced Micro Devices (AMD) lifted the sector. Shares of the chipmaker surged over +6% in pre-market trading after it posted upbeat Q3 results, issued Q4 revenue guidance that smashed analysts’ expectations, and forecast revenue growth of more than 80% next year.

Investors are now awaiting the U.S. ADP employment report and other key economic releases, as well as a new round of corporate earnings reports.

In yesterday’s trading session, Wall Street’s major indexes closed mostly higher, buoyed by a resurgence in the AI trade. Chip and AI infrastructure stocks gained, with Sandisk (SNDK) climbing over +4% and Advanced Micro Devices (AMD) rising more than +3%. Also, Fiserv (FISV) surged over +12% and was the top percentage gainer in the S&P 500 after the financial-tech company reported better-than-expected Q3 results and reaffirmed its full-year guidance. In addition, Aehr Test Systems (AEHR) jumped more than +26% after the company posted upbeat FQ1 results and raised its full-year revenue guidance. On the bearish side, Gartner (IT) tumbled over -13% and was the top percentage loser in the S&P 500 as the company’s implied Q4 guidance disappointed investors.

Economic data released on Tuesday were better than expected, providing support to equities. U.S. JOLTS job openings rose to a 4-month high of 7.523 million in September, stronger than expectations of 7.150 million. Separately, U.S. factory orders climbed +1.8% m/m in September, stronger than expectations of +1.2% m/m.

Meanwhile, BMO analysts said the stronger-than-expected job openings report “provides a solid read on labor demand that reinforces the Fed’s hawkish bias and supports the base-case expectation for a quarter-point rate increase at the FOMC’s December meeting.”

U.S. rate futures are currently pricing in an 82.9% chance of a 25-basis-point rate hike and a 17.1% chance of no rate change at the December meeting.

Third-quarter corporate earnings season remains in full swing, and investors are looking ahead to reports from major companies today, including Arm Holdings (ARM), McDonald’s (MCD), Qualcomm (QCOM), Uber Technologies (UBER), and CVS Health (CVS). According to Bloomberg Intelligence, S&P 500 companies are expected to post an average +31% jump in third-quarter earnings from a year earlier.

On the economic front, investors will focus on the U.S. ADP private payrolls report, which is set to be released in a couple of hours. Economists forecast that private-sector payrolls will rise by 67K in October following a 90K gain in September.

The U.S. ISM non-manufacturing PMI and S&P Global services PMI will also be closely monitored today. Economists expect the October ISM services index to dip to 54.8 from 54.9 in September, while the final S&P Global services PMI is projected to remain unrevised at 57.9.

The U.S. trade balance data will be released today. Economists anticipate that the trade deficit will widen to -$107.9 billion in September from -$105.6 billion in August.

The EIA’s Weekly Petroleum Status Report will be released today as well. Economists expect crude oil inventories to decline by 1.7 million barrels in the week ended Oct. 30, compared with a decrease of 1.9 million barrels in the prior week.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.94%, down -0.76%.

The Euro Stoxx 50 Index is up +1.63% this morning as investors assessed a Democratic sweep of the U.S. Congress. Bank and tariff-exposed stocks outperformed on Wednesday. Preliminary data from Eurostat released on Wednesday showed that the Eurozone’s annual inflation rate accelerated in October to its highest level in three years, reinforcing expectations that the European Central Bank will raise interest rates again next month. Separately, a survey showed that the Eurozone’s economic expansion eased to its slowest pace in four months but remained resilient in October. In addition, the ECB said that Eurozone wage growth is expected to pick up slightly in the first nine months of next year, based on the latest pay agreements. Meanwhile, Sweden’s central bank raised its policy rate by a quarter point to 2.00% on Wednesday, as widely expected, and indicated that further interest-rate hikes are likely. “If the inflation and economic outlook holds, it is likely that the policy rate will be raised further in the coming year,” the central bank said in a statement. In corporate news, Novo Nordisk (NOVOB.C.DX) rose over +2% after the drugmaker reported better-than-expected Q3 adjusted operating profit and raised its full-year guidance.

Eurozone’s CPI (preliminary), Core CPI (preliminary), Composite PMI, and Services PMI data were released today.

Eurozone’s October CPI rose +4.0% y/y, in line with expectations.

Eurozone’s October Core CPI rose +2.5% y/y, in line with expectations.

Eurozone’s October Composite PMI was revised downward to 51.7 from the preliminary reading of 51.9.

Eurozone’s October Services PMI was revised downward to 51.4 from the preliminary reading of 51.7.

Asian stock markets today settled mixed. China’s Shanghai Composite Index ($CHSC) closed up +2.16%, and Japan’s Nikkei 225 Stock Index ($NKY) closed down -1.42%.

China’s Shanghai Composite Index closed sharply higher today as authorities stepped up efforts to support the market. The advance also tracked a broad rebound across Asian markets as investors assessed the outcome of the U.S. midterm elections. Turnover in a basket of nine exchange-traded funds favored by the so-called national team of state-backed investors reached about 83 billion yuan on Wednesday, exceeding levels seen in most trading sessions this quarter, according to data compiled by Bloomberg. Meanwhile, more companies ramped up buyback plans, with Suzhou Dongshan Precision Manufacturing Co.’s controlling shareholders proposing to return at least 1 billion yuan to investors in 2026 through cash dividends and share repurchases. The plans followed the People’s Bank of China’s announcement that it would cut the rate on its relending facility to 1% from 1.25%, establish the program as a permanent measure, and encourage banks to expand lending. The PBOC said on Wednesday that banks had already applied for more than 200 billion yuan in relending quotas. Semiconductor and other AI-related stocks popped on Wednesday. Gains were further boosted by reports that Chinese AI developers may receive only a fraction of the advanced Nvidia chips, potentially driving demand for homegrown alternatives. The benchmark Shanghai Composite Index posted its biggest one-day percentage gain since early April. On the economic front, a private survey released on Wednesday showed that China’s services activity grew in October at its weakest pace since July, as rising costs and intensifying competition dampened business sentiment.

The Chinese October RatingDog Services PMI came in at 50.8, weaker than expectations of 51.7.

Japan’s Nikkei 225 Stock Index closed lower today as investors digested the outcome of the U.S. midterm elections, which saw Democrats win control of both chambers of Congress. The Nikkei initially sank as much as 4.8% as the sweeping Democratic victory sparked concerns over stricter regulation of the AI industry, putting pressure on related stocks. However, the benchmark later pared most of its losses, tracking a rebound in U.S. equity futures, as analysts suggested investors were relieved to have some clarity, even if the outcome was not what most investors had anticipated. Chip and other AI-related stocks were among the biggest losers on Wednesday, pushing the Nikkei to its lowest level since July 30. Memory-chip maker Kioxia Holdings slumped over -5%, while tech investor SoftBank Group and chip-testing equipment maker Advantest each fell more than -3%. In corporate news, Mitsui Chemicals tumbled over -10% after Reuters reported that government-backed Japan Investment Corp. was in talks to sell JSR Corp. to the company. Investor focus is now on the Bank of Japan’s minutes from its September meeting, scheduled for release on Thursday. At that meeting, the central bank raised interest rates by 25 basis points to 1.25%. Attention will then turn to Japan’s September wage data and a speech from BOJ Governor Kazuo Ueda. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -30.07% at 24.98.

Pre-Market U.S. Stock Movers

Advanced Micro Devices (AMD) climbed over +6% in pre-market trading after the chipmaker posted upbeat Q3 results, issued Q4 revenue guidance that smashed analysts’ expectations, and forecast revenue growth of more than 80% next year.

Super Micro Computer (SMCI) surged more than +8% in pre-market trading after the server company reported stronger-than-expected  FQ1 results, issued above-consensus FQ2 guidance, and raised its full-year revenue forecast.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Wednesday - November 4th

Arm Holdings (ARM), McDonald’s (MCD), QUALCOMM (QCOM), Uber Technologies (UBER), McKesson (MCK), CVS Health (CVS), Emerson Electric Co. (EMR), MercadoLibre (MELI), AppLovin (APP), Motorola Solutions (MSI), Datadog (DDOG), Manulife Financial (MFC), The Allstate Corporation (ALL), Cencora (COR), W.W. Grainger (GWW), MetLife (MET), Aflac (AFL), Cenovus Energy (CVE), Edwards Lifesciences (EW), Vivmark Residential (VMRK), Sun Life Financial (SLF), Medline (MDLN), Revolution Medicines (RVMD), Coherent (COHR), Martin Marietta Materials (MLM), Royalty Pharma (RPRX), TKO Group Holdings (TKO), Expedia Group (EXPE), Nutrien (NTR), Atmos Energy (ATO), The Kraft Heinz Company (KHC), SharkNinja (SN), Corpay (CPAY), Eversource Energy (ES), United Therapeutics (UTHR), Qnity Electronics (Q), GLOBALFOUNDRIES (GFS), Texas Pacific Land (TPL), STERIS (STE), Amcor (AMCR), PTC Inc. (PTC), Brookfield Renewable Partners (BEP), Permian Resources (PR), Fidelity National Information Services (FIS), Royal Gold (RGLD), Circle Internet Group (CRCL), CDW Corporation (CDW), Curtiss-Wright (CW), ITT Inc. (ITT), Zimmer Biomet Holdings (ZBH), Western Midstream Partners (WES), CF Industries Holdings (CF), Host Hotels & Resorts (HST), Charles River Laboratories International (CRL), APA Corporation (APA), News Corporation (NWS), Pan American Silver (PAAS), News Corporation (NWSA), Stanley Black & Decker (SWK), Fair Isaac (FICO), Performance Food Group Company (PFGC), Trimble (TRMB), Wayfair (W), Flutter Entertainment (FLUT), MKS Inc. (MKSI), Coca-Cola Consolidated (COKE), Coeur Mining (CDE), SiTime (SITM), American Homes 4 Rent (AMH), Watts Water Technologies (WTS), Paycom Software (PAYC), HubSpot (HUBS), U-Haul Holding Company (UHAL), Figma (FIG), The New York Times Company (NYT), Insulet (PODD), Chime Financial (CHYM), Albemarle (ALB), Brookfield Renewable (BEPC), Qiagen (QGEN), U-Haul Holding Company (UHAL.B), Cognex (CGNX), Bio-Rad Laboratories (BIO), Solstice Advanced Materials (SOLS), Caris Life Sciences (CAI), Snap Inc. (SNAP), Owens Corning (OC), Bio-Rad Laboratories (BIO.B), Bruker (BRKR), Kinetik Holdings (KNTK), Westlake (WLK), Cytokinetics (CYTK), Primerica (PRI), Dutch Bros (BROS), The Timken Company (TKR), Chord Energy (CHRD), NNN REIT (NNN), Ralliant (RAL), Hut 8 (HUT), National Fuel Gas Company (NFG), Viavi Solutions (VIAV), Avnet (AVT), The Macerich Company (MAC), South Bow (SOBO), Zillow Group (ZG), Victory Capital Holdings (VCTR), Zillow Group (Z), CAVA Group (CAVA), Southwest Gas Holdings (SWX), Matson (MATX), e.l.f. Beauty (ELF), Enact Holdings (ACT), Clear Secure (YOU), Black Hills (BKH), GRAIL (GRAL), B2Gold (BTG), LandBridge (LB), Klaviyo (KVYO), Magnolia Oil & Gas (MGY), MGIC Investment (MTG), Eagle Materials (EXP), Rayonier (RYN), Ormat Technologies (ORA), NICE Ltd. (NICE), Murphy Oil (MUR), Cirrus Logic (CRUS), Blackstone Secured Lending Fund (BXSL), Remitly Global (RELY), OceanaGold (OGC), Solaris Energy Infrastructure (SEI), Colliers International Group (CIGI), Camtek (CAMT), BillionToOne (BLLN), Blue Owl Capital (OBDC), VSE Corporation (VSEC), Reynolds Consumer Products (REYN), Trex Company (TREX), Acushnet Holdings (GOLF), NorthWestern Energy Group (NWE), Lumen Technologies (LUMN), OPENLANE (OPLN), Joby Aviation (JOBY), Materion (MTRN), ESAB Corporation (ESAB), Radian Group (RDN), Option Care Health (OPCH), Tanger (SKT).

On the date of publication, Oleksandr Pylypenko did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.