US Index Futures and Tech Equities Slide as Early Midterm Results Show Democratic Leads

U.S. stock index futures dropped, with S&P 500 e-mini futures falling roughly 1.2% and Nasdaq futures posting steeper declines, as early U.S. midterm returns signaled Democratic momentum. Early counts showed Democrats leading 139 to 89 in the House and 46 to 36 in the Senate. Markets are pricing in legislative gridlock, reduced prospects for fiscal stimulus and tax cuts, and tighter scrutiny over technology and AI data centers. The selloff hit international markets, dragging Japan's Nikkei down 3.1%, while shares of Tesla and SpaceX dropped about 1.8% in postmarket trading over looming regulatory inquiries.