Stock futures slid Tuesday night after Democrats won commanding victories in key races across the country.The size of the blue wave surprised investors, many of whom had been expecting more of a ripple.S&P 500 futures that track the broad market index slid by more than 0.5%, while Dow Jones Industrial futures tumbled by more than 100 points.Futures for the Nasdaq 100 index, which tracks the largest tech stocks, sold off by more than 1%.As results rolled in, stocks fell much further before they recovered some, with Nasdaq 100 futures down at one point by as much as 2.5%.“The results signal a sharp rebuke of President Trump’s shift of focus away from economic issues and underscore voters’ insistence that Washington tackle the cost of living,” Evercore’s Sarah Bianchi wrote in a note late Tuesday that called the outcome a “blue tsunami.” JPMorgan Chase analysts cautioned that this kind of result could trigger an “AI sell-off on assumed higher regulation.”“Possible new data-center restrictions, and higher taxes on corporations and top earners,” would be “all potential headwinds for tech” companies.
On the other hand, the healthcare and clean energy industries could emerge as “relative beneficiaries” of a Democratic-controlled Congress.The JPMorgan analysts also pointed to a potential “investigation risk” facing CEOs who have close ties to President Donald Trump.Major companies ranging from Nvidia to Apple to NBC News’ parent company, Comcast, have donated millions of dollars to Trump’s pet projects, most notably his ballroom, and their leaders have regularly appeared alongside him at events.Top Democrats have already signaled their interest in launching investigations of some of Trump’s projects in January, when their new congressional majority will give them subpoena power.Democrats vs.
data centersTech stocks are critically important to the surge in the value of U.S.equities markets over the last two years.
Trillion-dolla...