US stock futures rallied on Wednesday after Democrats won control of both chambers of Congress, reversing steep overnight losses.

Market data showed Dow Jones futures climbing 800 points, or 1.59%, at 7:50 a.m. ET on November 4. S&P 500 futures gained 1.04%, while Nasdaq-100 futures rose 0.93%. The recovery followed Tuesday's midterm elections as investors assessed the outlook for U.S. economic policy.

Dow Futures Reverse Overnight Election Losses

U.S. stock futures initially fell as Democratic victories emerged in the House and Senate. Nasdaq-100 contracts dropped as much as 2.4%, while S&P 500 futures declined around 1.4% before recovering.

The rebound followed President Donald Trump's comments that he would accept the election results and work with Democrats. The outcome will create a divided government when the new Congress convenes in January.

Jay Woods, chief market strategist at Freedom Capital Markets, linked the recovery partly to Trump's initial response. He said markets historically respond positively to political gridlock, although uncertainty remains.

Democrats will control Congress, while Trump retains the presidency. Major legislation would still require presidential approval or enough congressional support to override a veto.

Technology Shares Recover as AMD Climbs

Large technology stocks recovered during premarket trading. Amazon rose about 3%, while Nvidia, Alphabet and Meta gained more than 1% each. Microsoft also advanced as investors reassessed the overnight selloff.

Advanced Micro Devices gained 6.3% after reporting strong quarterly results and forecasting faster growth in 2027. The chipmaker's expanding data-center business supported its outlook.

Other semiconductor stocks joined the recovery. Micron Technology, Broadcom and Marvell Technology gained between 1% and 2%, although concerns about artificial intelligence spending remained.

Solar and Healthcare Stocks Post Strong Gains

Renewable energy stocks were among Wednesday's biggest premarket gainers. First Solar climbed 9.4%, Sunrun rose 10%, and Enphase Energy advanced 7.6%. Investors assessed whether Democratic control of Congress could increase support for clean-energy policies.

Healthcare shares also gained. Molina Healthcare rose 6%, Centene added 4.5%, and HCA Healthcare advanced 3.7%. The moves followed expectations of renewed discussions over federal healthcare spending and insurance policy.

Both sectors face unresolved legislative questions. Democrats may seek policy changes, but the party does not control the presidency. Any major legislation would therefore require further negotiations.

Data Center, Defense and Elon Musk-Linked Stocks Fall

Not all shares joined the broader stock futures rally. Core Scientific declined 2.8%, while IREN fell 1.4%. Investors assessed the possibility of greater oversight of artificial intelligence data centers, particularly in Texas and Georgia.

Defense contractors also weakened. Northrop Grumman lost about 5%, while Lockheed Martin, RTX and L3Harris dropped more than 3%. Investors weighed whether congressional negotiations could change President Trump's proposed USD 1.5 trillion defense budget.

Meanwhile, Tesla fell 3.6%, SpaceX slipped 3.2%, and Trump Media declined 7% in premarket trading. The U.S. dollar also weakened against major currencies, while longer-term Treasury yields moved lower.

The contrasting sector moves came as investors assessed the election results and potential policy changes. The regular trading session will provide further evidence of whether Wednesday's stock futures recovery continues.

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