Stocks – U.S. Futures Rise after Midterm Election Results

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Stocks - U.S. Futures Rise after Midterm Election Results

Investing.com – U.S. futures jumped on Wednesday, as midterm elections played out as expected, with Congress split after Democrats won the House of Representatives but Republicans kept control of the Senate.

The S&P 500 futures rose 20 points or 0.75% to 2,779.75 as of 6:50 AM ET (11:50 GMT) while Dow futures were up 153 points, or 0.60%, to 25,794.0. Meanwhile tech heavy Nasdaq 100 futures increased 73 points, or 1.05%, to 7,090.25.

Investor confidence was boosted after the midterm elections, as a gridlock in Congress has historically given strong returns in equity markets.

The results were in line with forecasts and seen as a referendum on U.S. President Donald Trump’s term.

Despite the split, Trump tweeted that the elections were a “tremendous success.”

Meanwhile, the Federal Reserve begins its two-day policy meeting. While no rate hike is expected, traders expect the Fed to raise rates in December.

Earnings season continues, with results from Twenty-First Century Fox Inc (NASDAQ:FOX), Qualcomm (NASDAQ:QCOM), Office Depot Inc (NASDAQ:ODP), Humana (NYSE:HUM), and others.

Cloud communications company Twilio Inc (NYSE:TWLO) surged 16.87% after its earnings came in higher than expected, while General Electric (NYSE:GE) rose 2.44% and Apple (NASDAQ:AAPL) gained 1.09%. Intel (NASDAQ:INTC) gained 1.44% while Microsoft (NASDAQ:MSFT) was up 1.28% and JPMorgan (NYSE:JPM) inched up 0.91%.

Elsewhere, Zillow Group Inc (NASDAQ:ZG)slumped 19.39% after its third quarter revenue missed estimates. Sprint Corp (NYSE:S) fell 2.90% while DexCom Inc (NASDAQ:DXCM) was down 2.23%.

In commodities, gold futures rose 0.97% to $1,235.70 a troy ounce while crude oil futures increased 0.74% to $62.67 a barrel. The U.S. dollar index which measures the greenback against a basket of six major currencies, fell 0.62% to 95.52.

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