Us Markets Edge Higher as Midterm Elections Loom, Tech Slump Weighs Nasdaq

US markets moved carefully as investors watched the US midterm elections on November 3, 2026. Trading stayed mixed overnight, with losses in major tech shares. The Dow Jones finished higher, yet the Nasdaq Composite and S&P 500 ended lower. Early Tuesday futures also pointed to uneven risk appetite, with traders awaiting policy clues.

Market pricing suggested Democrats held the advantage going into voting day. Investors expected that outcome to shape fiscal plans and trade risks. Some also believed it could curb war funding pressures. A win for Donald Trump's administration was seen as a shock scenario. Traders also tracked political strain tied to the Iran conflict and energy costs.

The Dow Jones Industrial Average rose 213.67 points, or 0.41%, to 51,983.98 on Monday. The Nasdaq Composite fell 272.63 points, or 1.07%, to 25,164.36. The S&P 500 slipped 38.67 points, or 0.51%, to 7,541.40. Selling pressure stayed focused on AI-linked names.

"Wall Street ended mixed, with gains across most U.S. stocks and a rise in the Dow Jones Industrial Average offset by continued selling in AI-related shares that weighed on the Nasdaq. The weakness has spilled over into Asian markets, where technology stocks are leading a sharp regional decline," said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth.

The early Tuesday tape showed a split across US stock futures. Dow Jones futures fell 143 points, or 0.27%, to 51,990. Nasdaq 100 futures added 123.50 points, or 0.44%, to 28,251. S&P 500 futures edged up 3.50 points to 7,578. Traders weighed election uncertainty against softer oil prices.

Market gauge	Level	Move
Dow Jones Industrial Average (close)	51,983.98	+213.67 (+0.41%)
Nasdaq Composite (close)	25,164.36	-272.63 (-1.07%)
S&P 500 (close)	7,541.40	-38.67 (-0.51%)
Dow Jones futures	51,990	-143 (-0.27%)
Nasdaq 100 futures	28,251	+123.50 (+0.44%)
S&P 500 futures	7,578	+3.50

Voting for the US midterm election will begin on November 3. The Conversation polls put Democrats at an 82% chance of taking the Senate. Democrats also stayed strong favourites for the House in Nate Silver's model. Over the last week, Senate momentum shifted towards Democrats. Generic ballot averages showed an 8 to 9.4 point lead.

Some market watchers flagged one upside risk for Republicans. Petrol prices fell in September 2026, which could lift voter mood. Even so, Wall Street already corrected sharply into October. Investors also assessed how election results could affect bond yields, spending choices, and trade actions.

US midterm elections, Nasdaq tech sell-off, and earnings watch

October 2026 brought heavy losses in tech-heavy indices. The Nasdaq 100 dropped 2,023.65 points, or 6.65%. The Nasdaq Composite slid 1,424.06 points, or 5.30%. A $2 trillion erosion in tech stocks drove the fall. Investors questioned AI infrastructure spending and longer-term growth. The S&P 500 fell 1%, while the Dow Jones gained 1.7%.

Company updates also shaped sentiment after the bell. Apple shares fell nearly 3% in after-hours trading on slower sales growth. Apple also guided to weaker fourth-quarter revenue than expected. Palantir dropped almost 3% despite stronger-than-anticipated Q3 earnings. Anthropic reported a twelvefold jump in quarterly revenue. Anthropic also planned to invest more than $895 billion over coming years.

Investors next tracked key results due Tuesday, according to Trading Economics. The list included AMD, SMCI, Pfizer, Shopify and Booking Holdings. These reports were expected to influence risk positioning. Traders also watched whether AI spending worries eased. Market breadth remained sensitive to the largest technology names.

Radhakrishnan said the election was the next global market trigger. The focus stayed on fiscal policy, trade, and the Iran conflict. Radhakrishnan also linked steadier sentiment to lower crude prices. Brent crude moved back towards $105 a barrel. Qatar-mediated exchanges between the U.S. and Iran raised hopes of progress. OPEC+ left December production targets unchanged.

Ponmudi R, CEO of Enrich Money, also described global cues as mixed. Dow Jones gains came as oil retreated, while the S&P 500 and Nasdaq faced valuation concerns. Ponmudi said investors stayed cautious before the vote. Ponmudi added WTI crude traded near $96-97 per barrel. The move followed its steepest one-day drop in over three months.

"A sustained de-escalation in geopolitical tensions and further moderation in energy prices could support the ongoing recovery. However, a breakdown in negotiations or continued weakness in global technology stocks could revive volatility, weigh on broader risk appetite and influence global capital flows," Ponmudi lastly added.

For Indian investors, analysts watched oil prices and overseas tech weakness closely. Lower crude could support Indian equities at the margin. Yet global risk sentiment still depended on US policy direction. The views and recommendations were those of the cited analysts only. Goodreturns.in and Greynium Information Technologies Private Limited did not endorse the content. The information was educational and not investment advice.