Wall Street Blinked, Then Bet on Gridlock

Futures sank overnight as Democrats swept Congress, then rallied once President Trump accepted the results. The real worry now is Texas, data centers and the AI trade.

By Clara Hughes

Markets flinched first. As Democrats rolled up wins in Tuesday's midterms, Nasdaq-100 futures fell as much as 2.4% on fears of tighter rules for AI and Big Tech, according to Reuters reporting summarized in search results, before turning higher after President Trump accepted the results and said he would work with Democrats. By Wednesday morning in New York, the mood had flipped. Futures tied to the Dow Jones Industrial Average jumped 803 points, or 1.5%, CNBC reported, while S&P 500 futures rose 0.9% and Nasdaq-100 futures gained 0.5%. "There will be gridlock and historically this is good for the market," said Jay Woods, chief market strategist at Freedom Capital Markets, who credited the rebound in part to "the president's initial tone and reaction to the results." Keep reading with Altas Premium. Below: why investors