US Stock Market Today: Dow Futures Climb as AI and Chip Stocks Decline

US stock market futures traded mixed on Thursday, November 5, as Dow Jones futures gained more than 300 points while technology shares declined following the Democrats' midterm election victory.

Market data at 7:04 a.m. ET showed Dow futures advancing 0.62%, while S&P 500 futures gained 0.2%. Nasdaq-100 futures fell 0.51% as semiconductor and data center stocks faced renewed selling pressure.

Dow Futures Extend Gains After Post-Election Rally

The Dow Jones Industrial Average gained 1,569 points, or 3.03%, on Wednesday, closing at 53,356.12. The S&P 500 rose 1.58% to 7,688.62, while the Nasdaq Composite advanced 1.44% to 25,736.51.

The gains followed Democratic victories in both chambers of Congress during the November 3 midterm elections. Investors assessed how the results could affect federal spending, taxes, trade policies and regulations. Democrats will take control of Congress in January 2027.

Financial stocks continued to attract buyers during Thursday's premarket session. Goldman Sachs, JPMorgan Chase and American Express gained more than 1% each. Meanwhile, investors moved away from selected technology shares after Wednesday's broad market advance.

The latest moves also followed a sharp decline in crude oil prices, which reduced immediate concerns about energy-driven inflation. However, the Iran conflict and uncertainty over future U.S. policy continued to influence trading.

Qualcomm Shares Drop as Semiconductor Stocks Decline

Qualcomm shares fell about 9.6% in Thursday's premarket trading after the chipmaker released its fiscal fourth-quarter results. The company reported revenue of USD 10.32 billion, down 8% from the previous year.

Its quarterly handset revenue declined 26% to USD 5.14 billion, missing market expectations. However, Qualcomm's automotive revenue increased 89% to USD 1.99 billion as the company continued expanding beyond smartphone chips.

Other semiconductor companies also declined. Nvidia, Marvell Technology and Intel traded lower as investors assessed potential changes to US artificial intelligence infrastructure spending.

Meanwhile, AppLovin shares jumped approximately 20% after the advertising technology company announced quarterly revenue of USD 2.18 billion, representing 55% annual growth. Net income increased 72% to USD 1.44 billion.

AI Data Center Stocks Fall on Regulatory Concerns

Data center operators also faced selling pressure following Democratic victories in states where residents have opposed large infrastructure projects.

CoreWeave, Nebius and IREN declined during premarket trading, while Applied Digital and Core Scientific also weakened. The companies have substantial exposure to AI data center development and financing.

UBS analysts estimated that construction delays could threaten roughly 30% of expected U.S. data center capacity additions in 2028. However, the projection reflects potential development risks rather than confirmed project cancellations.

"The market's moving from the promise of AI to the price of AI," said Ted Parkhill, founder and CEO of Incline Investment Management.

OpenAI also announced new infrastructure commitments on Thursday, including plans to cover electricity and related infrastructure costs at its future company-owned campuses. The measures followed public concerns about power demand and rising utility bills.

The debate comes as Bitcoin mining companies expand into AI infrastructure, increasing their exposure to data center construction and financing conditions.

Oil Prices Rebound as Investors Await US Jobs Data

Brent crude recovered toward USD 97 per barrel on Thursday after falling more than 8% during Wednesday's session. US West Texas Intermediate crude traded near USD 89.67.

The previous decline followed market expectations that the Democratic election victory could increase pressure for a resolution to the Iran conflict. However, no final agreement had been announced.

European markets advanced, with the Stoxx 600 gaining around 0.6%. Meanwhile, the Bank of England raised its benchmark interest rate by 25 basis points to 4%, responding to inflation pressures linked to energy prices.

Investors also monitored US Treasury yields, with the 10-year yield near 4.89%. The relationship between oil prices and financial market volatility remained relevant as energy costs influenced inflation expectations.

Attention now turns to the US October employment report scheduled for Friday, November 6. The figures will provide fresh information on hiring conditions ahead of the Federal Reserve's December policy meeting.

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