Futures Drop as Democrats Near Congressional Sweep, Sparking AI Sector Jitters
US stock futures fell sharply on Tuesday evening as early results indicated Democrats were likely to secure a majority in both the House and Senate. S&P 500 futures dropped 1.1%, while Nasdaq-100 futures fell 2%. The decline was driven by fears that a Democratic 'blue wave' could impose stricter regulations on data centers and reverse business-friendly tax policies. Key AI stocks, including Nvidia and CoreWeave, traded lower in extended sessions, while solar stocks rallied on expectations of renewed support for renewables. The 10-year Treasury yield fell to 4.915%, and the VIX volatility index rose above 20, signaling heightened investor anxiety.