3rd (local time) U.S. midterm elections are expected to result in a Democratic victory, leading to a decline in U.S. stock index futures.
As of 11:13 a.m. KST on the 4th, futures for the U.S. Standard & Poor's (S&P) 500 and Dow Jones Industrial Average are down 0.53% and 0.88%, respectively. At the same time, futures for the tech-heavy Nasdaq 100 have dropped 1.63%, significantly increasing their losses.
This decline comes as ballot counting is underway, with expectations that the Democrats will secure victories in both the House and Senate.
If the Democrats gain control of Congress, concerns are rising that the construction policies for artificial intelligence (AI) data centers, strongly pushed by the Trump administration and Republicans, may face setbacks, particularly impacting tech stocks.
Anthony Saglimbene, chief market strategist at Ameriprise Financial, told Reuters, "If the Democrats become the majority in both chambers, there could be some pressure on tech stock trading."
Chuck Carlson, CEO of Horizon Investment Services, also noted, "AI trades have been very important to the market, and this election will have a direct impact."
Additionally, if the Democrats become the majority, there are concerns about potential delays in passing budget proposals, as well as increased regulations in various sectors, including defense, healthcare, banking, and cryptocurrency, which could also pressure related stocks.
However, historically, the S&P 500 index has risen in the year following midterm elections since 1946, leading some investors to adopt a long-term perspective, according to Reuters.
Seth Hikel, chief investment officer at Wells Management, stated, "Regardless of the election outcome, we expect market volatility to remain high in the coming weeks."
* This article has been translated by AI.
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