The Dow Jones Industrial Average was set to achieve further gains on Thursday after its significant rally following the Democrats’ midterm victories, as investors continued to shift away from major technology stocks for another day. Futures contracts linked to the 30-stock Dow increased by 302 points, representing a 0.6% rise. S&P 500 futures experienced an increase of 0.2%, whereas Nasdaq-100 futures saw a decline of 0.6%. Goldman Sachs, JPMorgan Chase, and American Express experienced increases exceeding 1% each, contributing to the upward movement of the Dow. Shares in select technology companies declined in premarket trading, resulting in a subdued gain for S&P futures and exerting downward pressure on Nasdaq futures. Tesla experienced a decline of 2%, mirroring the performance of SpaceX.
Shares of neocloud companies experienced a decline, with CoreWeave decreasing nearly 4% and both Nebius and Iren dropping over 3%. This downturn is attributed to concerns regarding potential backlash against the industry following election outcomes in several states. Chipmaker Qualcomm reported earnings that exceeded estimates; however, the stock experienced a decline of 9% due to a weaker-than-anticipated earnings outlook. AppLovin, the artificial intelligence-powered advertising company, experienced a notable increase of 19% following the release of results that surpassed expectations and provided guidance that exceeded estimates. Trading on Wednesday reflected investors’ responses to the midterm results, which indicated that Democrats had gained control of both the House of Representatives and the Senate, achieving substantial majorities in each chamber, along with a number of governorships.
The Dow surged over 1,500 points, achieving its most significant daily gain since April 2025, while both the S&P 500 and Nasdaq Composite experienced increases exceeding 1% each. Jordan Watson, a portfolio manager at Tandem Investment Advisors, indicated that the significant rally and the shift away from artificial intelligence names might be short-lived. “We may be headed for more volatility as investors digest the election results and potential policy implications,” he said. “I wouldn’t view [Wednesday’s equity trading] as an all-clear signal, but rather a call for some sanity around the amount of capital being poured into the AI infrastructure build-out and whether those investments will generate the returns investors expect.”
Across the Atlantic, the pan-European Stoxx 600 experienced an increase of 0.71%, while the U.K.’s FTSE 100 reached a three-month peak, advancing by 1%. France’s CAC 40 experienced an increase of 1.1%, while the German DAX saw an advancement of 0.74%. In Asia, Japan’s Nikkei 225 experienced an increase of 0.49% on Thursday, whereas the Topix saw a rise exceeding 2%. South Korea’s Kospi experienced a decline of 2.33%, while the tech-oriented, small-cap Kosdaq saw a decrease of 1.24%. Australia’s benchmark index experienced an increase of 1.39%.
