US Stock Market To Fall On Wednesday? Dow Jones, Nasdaq Futures Crash 479-690 Pts As Democrats Win US Midterm

The US stock futures crashed sharply on Wednesday as Democrats swept the US midterm elections. Asian shares also joined the bearish trend following the loss of US President Donald Trump's administration. Investors are concerned about the prospect of a political gridlock in Washington. The performance comes after a mixed trend seen overnight on Wall Street, with the Nasdaq Composite and S&P 500 indexes gaining, while the Dow Jones ended in the red.

US Stock Futures Today, November 4, 2026:

Dow Jones futures crashed by at least 479 points to hit an intraday low of 51,416 in the early trade of Wednesday, while the Nasdaq 100 index nosedived by at least 690 points to hit an intraday low of 27,615.75. Further, the S&P 500 futures also dropped by over 1% to hit an intraday low of 7,490.

The team in blue, Democrats, took full control of the US midterm election, winning 52 seats in the Congress house. Trump told reporters that he is absolutely willing to accept those results and has promised to work with the Democrats.

Trump's Republican party faced a sharp decline in the midterm election, winning just 40 seats. Among key reasons to their loss is attributed to the rise in cost of living, tariff hikes and Iran conflict that pushed gasoline prices extremely high, angering citizens.

"I wasn't on the Ballot and if I was, we would have won IN A LANDSLIDE! Thank you for your attention to this matter," Trump said.

He also added, "I'm going to become a Political Pundit, both good and bad, on the reasons these Candidates won and lost!"

Overall, the Republicans lost 6 seats and the Democrats gained 6 seats in the Congress house. There were two seats won by independent candidates. Eventually, Republicans lost more control than expected.

Investors are also concerned that a potential Democratic sweep could result in stricter AI regulations and greater corporate oversight. Nasdaq 100 futures declined 2%, while S&P 500 and Dow futures were down 1.2% and 0.8%, respectively. On the corporate front, AMD jumped more than 3% in after-hours trading after reporting stronger-than-expected third-quarter earnings and revenue, boosting shares of other semiconductor companies. Super Micro Computer and Arista Networks also advanced following better-than-expected quarterly results.

US Stock Market Outlook Today, November 4, 2026:

"US midterm election jitters and a global tech divergence set a soft Wednesday tone for Indian equities, with GIFT Nifty pointing 30 points lower to 23,725. US futures and the dollar slid as markets weighed a potential Democratic Congressional shift that could inject volatility into the AI trade," said Hemang Gor, Senior Research Analyst - Derivatives & Technical Research, Axis Direct.

Globally, Wall Street ended mixed: the Nasdaq added 0.83% (+207 pts) and S&P 0.37% (+28 pts) on an AI rebound ahead of AMD earnings. Conversely, Apple's weak margin outlook and a 4.95% US 10-Year yield (US10Y) dragged the Dow down 0.38% (-197 pts). US futures and the dollar softened today on fears a Democratic Congressional sweep could rattle AI stocks. Asia trades heavily negative (Nikkei -3%, Kospi -1%, HK/China -0.50%).

On Tuesday, the Dow Jones Industrial Average index dropped 197.26 points or 0.4% to end at 51,786.72. On the contrary, the Nasdaq Composite index climbed by 207.65 points or 0.83% to end at 25,372.01. The S&P 500 index also ended higher by 27.52 points or 0.4% to 7,568.92.

Apple reported its quarterly earnings, beating estimates in terms of earnings per share to $2.10 from consensus of $1.99. Also, the iPhone maker posted revenue of $114.5 billion, higher from forecast of $113.4 billion.

Tech results come as investors re-evaluate the AI trade following last week's plunge. Disappointing results and guidance from Amazon, Intel, and Alphabet set off the selling, with investors increasingly worried that hyperscalers have suffered too much damage to their free cash flow amid the AI spending binge, as per Charles Schwab's note.

On Wednesday, the US employment data will be released. Schwab's note said that the ADP employment change report for October will be released after September's strong 90,000 gain. That gain was followed, however, by just a 29,000 rise in the September nonfarm payrolls report, showing once again how the ADP report seldom is a good indicator of what to expect from official government numbers.

Beyond midterm elections, analysts expect Friday's nonfarm payrolls for October to show moderate jobs growth of 65,000.

Further, Schwab's note added, the government looks likely to be divided to some degree, and traditionally markets appreciate legislative gridlock that can slow regulatory changes. Major indexes have often climbed after mid-terms historically, and November and December tend to be seasonally solid months. Past isn't precedent, however.

At present, crude oil prices are under pressure, with US WTI trading flat to near $96 per barrel and Brent crude volatile towards $104 per barrel. Gasoline prices are up but natural gas prices dropped 1%. Spot gold surged by 1% to trade above $3,975 per ounce and spot silver gained over 1.5% to trade above $50.50 per ounce. US dollar fell to five-week low of 101.5 as investors digest midterm election news.

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