Dow Futures Rise 340 Points as Investors Shift Away From AI Stocks

US stock futures pointed higher on Thursday as investors reassessed the political and economic implications of the 2026 midterm elections, while shifting investments away from artificial intelligence companies. Dow futures climbed 340 points, or 0.6%, as financial shares advanced and technology stocks extended their losses.

S&P 500 futures increased 0.1%, while Nasdaq-100 futures declined 0.8%. Goldman Sachs, JPMorgan Chase and American Express each gained more than 1% in premarket trading, providing support for the Dow Jones Industrial Average.

Technology companies faced renewed selling pressure, particularly semiconductor manufacturers and businesses involved in AI infrastructure. Investors expressed concerns that Democratic victories in both chambers of Congress and key gubernatorial races could lead to greater regulation of the artificial intelligence industry.

Broadcom shares fell nearly 3% in premarket trading, while Nvidia declined almost 2%. Oracle lost more than 1%, and Tesla and SpaceX shares dropped more than 2% each.

Qualcomm reported earnings above analyst expectations but saw its shares plunge 9% after issuing a weaker-than-expected earnings outlook. Cloud infrastructure companies also declined, with CoreWeave losing almost 4% and Nebius and Iren falling more than 3% each.

AppLovin moved in the opposite direction, surging 19% after reporting better-than-expected financial results and issuing guidance above analyst estimates.

Jordan Watson, a portfolio manager at Tandem Investment Advisors, cautioned that the market rally and movement away from AI investments might not represent a lasting shift.

"We may be headed for more volatility as investors digest the election results and potential policy implications," Watson said. "I wouldn't view [Wednesday's equity trading] as an all-clear signal, but rather a call for some sanity around the amount of capital being poured into the AI infrastructure build-out and whether those investments will generate the returns investors expect."

His comments followed Wednesday's major market rally, when the Dow surged more than 1,500 points, recording its strongest daily performance since April 2025. The S&P 500 and Nasdaq Composite also advanced more than 1% each as investors responded to Democratic victories that secured comfortable majorities in the House of Representatives and Senate.

Meanwhile, US crude oil prices reversed their previous decline. West Texas Intermediate futures gained more than 2%, rising above $90 per barrel, while Brent crude futures advanced 3% to exceed $97.

Oil prices had fallen below $90 on Wednesday as investors anticipated that Democrats could use their strengthened congressional position to pressure President Donald Trump to end the Iran war.

International markets also recorded mixed performances. Europe's Stoxx 600 rose 0.71%, while the UK's FTSE 100 gained 1% to reach a three-month high. France's CAC 40 advanced 1.1%, and Germany's DAX increased 0.74%.

In Asia, Japan's Nikkei 225 gained 0.49%, while the Topix advanced more than 2%. South Korea's Kospi declined 2.33%, and the technology-focused Kosdaq fell 1.24%. Australia's S&P/ASX 200 climbed 1.39%.

US employment data provided another positive economic signal. Initial unemployment claims fell to a seasonally adjusted 189,000 for the week ended October 31, according to the Labor Department. The figure declined 6,000 from the previous week, came in below the Dow Jones estimate of 197,000 and matched the lowest level since July.

Continuing unemployment claims, which are reported one week later, increased by 23,000 to 1.72 million.

Separately, US labor productivity grew faster than expected in the third quarter, according to the Bureau of Labor Statistics. Nonfarm business productivity increased 3.6%, compared with 2.1% in the second quarter and above the 2.9% analyst estimate.

Unit labor costs, which measure compensation relative to productivity, declined 0.7%. The labor share of economic output also fell to 53%, its lowest level in a data series dating back to 1947.

Thomas Hempell, senior economist at Generali Investments, said President Trump's response to the election results helped strengthen investor confidence by reducing concerns about political conflict.

"President Trump's acknowledgement of the Democrats' victory in the midterms and his expressed openness to collaborating with the opposition have helped markets to rally on hopes that contestation of the results and more adverse polarization can be avoided," Hempell said.