U.S. stock futures showed mixed movements early Thursday, following a significant rally on Wednesday driven by decisive Democratic midterm wins and a sharp drop in oil prices. While the Dow futures edged higher, S&P 500 and Nasdaq-100 futures experienced declines, reflecting post-election policy uncertainty, particularly impacting Asian tech and AI-related stocks. Key corporate earnings reports and upcoming jobless claims data are set to influence market sentiment.
U.S. equity futures began Thursday with mixed performance, following a significant rally on Wednesday. This rally was fueled by a sharp decline in oil prices and the clarity provided by Democrats' decisive midterm election victories.
Specifically, S&P 500 futures were down 0.2%, while Nasdaq-100 futures saw a more substantial decline of 1.1%. In contrast, futures linked to the Dow Jones Industrial Average managed to tick up by 213 points, or 0.4%.
After Wednesday's closing bell, chipmaker Qualcomm announced earnings that surpassed estimates but still saw its shares fall by 6.5%. Meanwhile, AppLovin, an AI-powered advertising firm, soared nearly 24% after reporting stronger-than-expected results and an upbeat guidance.
Wednesday's broader stock market rally was significantly influenced by a drop in oil prices, with West Texas Intermediate crude futures plunging over 8% to settle at $88.12 a barrel. The Dow notably gained more than 1,500 points (3%), marking its best day since April 2025, while the S&P 500 advanced 1.6%.
These market movements came after Vice President JD Vance attributed Republican losses in Tuesday's midterms to the ongoing Iran war. The election results showed Democrats gaining control of both the House of Representatives and the Senate, securing comfortable majorities, alongside winning several governorships.
Consumer discretionary stocks, such as Walmart, which rose over 3%, were among the leaders of Wednesday's rally. Conversely, companies associated with data center build-out, like CoreWeave, experienced declines due to concerns over a potential backlash against the industry following various state election results. For example, in Texas, Democrat Gina Hinojosa, who advocated for stricter data center development regulations, won the gubernatorial election.
Jordan Watson, a portfolio manager at Tandem Investment Advisors, cautioned that the significant rally and the shift away from artificial intelligence stocks might be temporary. He commented, "We may be headed for more volatility as investors digest the election results and potential policy implications. 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."
Looking ahead, traders will monitor weekly jobless claims data due Thursday and the October nonfarm payrolls report expected Friday. Companies scheduled to report earnings include Tapestry, Kimberly-Clark, and ConocoPhillips in the morning, with Airbnb and Akamai following in the afternoon.
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Rheinmetall shares plunge 16% after outlook cut as military contracts stall
German defense giant Rheinmetall saw its shares drop by as much as 16% in early trading after cutting its full-year guidance on Wednesday. The company cited delays in military contracts and ammunition deliveries. This is Rheinmetall's second outlook reduction since August, when Germany scrapped plans to build warships, an order that would have been its largest since World War II. Rheinmetall now anticipates 2026 sales of approximately 13.2 billion euros ($14.9 billion), down from a previous range of 13.7 billion to 14.2 billion euros, with an operating margin expected around 18.5%, revised from 19%.
European stock markets open in the green
The pan-European Stoxx 600 rose 0.48% shortly after 8:05 a.m. in London, with most major bourses and sectors showing gains. Basic resources led the rally, climbing 2.51%, followed by autos and parts (2.05%) and travel and leisure (1.76%). Oil and gas stocks, however, reversed to fall 1.84%. In national markets, France's CAC 40 was up 1.08%, the U.K.'s FTSE 100 advanced 1.05%, Italy's FTSE MIB gained almost 0.1%, and Germany's DAX added 0.16%.
World's biggest spirit maker says Iran war is leading to continued volatility
Diageo, the British spirits giant known for Johnnie Walker and Guinness, reported a marginal 1.2% rise in net sales to $4.9 billion in its first-quarter trading update. Organic volume growth declined 0.1%. CEO Sir Dave Lewis stated that the U.S.-Iran war continues to impact operations, creating geopolitical uncertainty and volatility in energy, supply, and distribution. Diageo is also pursuing a restructuring strategy aimed at $1.2 billion in savings over 2027 and 2028.
South Korea’s Kospi plunges 5% as Asia-Pacific markets close mixed
Asia-Pacific markets concluded Thursday with mixed results. South Korea's Kospi led regional losses, falling 5.28% to 5,383.8, while the tech-focused Kosdaq dropped 5.11%. Japan's Nikkei 225 declined 1.79%, but the broader Topix rose 1.16%. Mainland China's CSI 300 increased 0.29%, and Hong Kong's Hang Seng index was up 3.61% in its final hour of trade. Australia's S&P/ASX 200 added 2.61%.
Maersk lifts profit outlook for third time as higher freight rates boost earnings
Maersk, the Danish shipping giant, reported third-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA) of $4.7 billion, up from $2.6 billion last year. The company raised its full-year profit guidance for the third time this year to between $14 billion and $14.5 billion, from an earlier $10.5-12.5 billion. CEO Vincent Clerc attributed the strong performance to a 46% increase in average freight rates, driven by the Strait of Hormuz closure, adverse weather, and broader congestion, noting global trade's resilience despite geopolitical uncertainty.
European stock markets set to start Thursday's session higher
European stock markets were poised for a positive open on Thursday. Futures for the U.K.'s FTSE 100 indicated a 1.11% rise, while Stoxx 50 futures were up 0.32%. France's CAC 40 was expected to open 0.29% higher, Germany's DAX by 0.36%, and Italy's FTSE MIB by nearly 0.1%.
Commerzbank’s net profit soars 45% in the third quarter
Commerzbank reported a 45% year-on-year surge in net profit to 859 million euros ($967 million) in the third quarter, driven by a 9% rise in revenues to 3.2 billion euros. This performance, boosted by securities fees and higher interest income, contributed to its best nine-month result on record, with operating profits up 17% to 40 billion. The German lender expects regulatory approvals for its acquisition by Italian bank UniCredit by early 2027.
Indonesia third-quarter growth beats expectations at 5.47%
Indonesia's economy expanded by 5.47% year-on-year in the third quarter, surpassing Reuters' economist poll prediction of 5.18%. This growth, which was also faster than the preceding quarter's 5.29%, was primarily fueled by government spending, alongside accommodation and food service activities. The country's benchmark index responded by rising nearly 2%.
Data center operator NextDC's shares surge 48% as rival firms move to acquire large stake
Shares of Australian data center operator NextDC jumped 48% after Goodman Group and U.S.-listed Digital Realty moved to acquire up to a 9.9% stake in the company. NextDC's board labeled the move "opportunistic," noting it occurred two weeks after the company disclosed power supply delays at its M3 Melbourne data center and revised its fiscal 2027 guidance.
Hong Kong's Hang Seng Tech index surges over 5%, bucking broader Asia tech sell-off
The Hang Seng Tech index in Hong Kong climbed over 5% on Thursday, a rare upturn amidst a wider sell-off in Asian technology stocks. Chinese tech heavyweights like Alibaba (+6.36%), Tencent (+6.42%), Baidu (+4.9%), and Kingsoft Cloud (+6.44%) all saw significant gains. This rally in Chinese tech occurred despite drops in Japanese and South Korean tech stocks, driven by worries over potential U.S. restrictions on AI infrastructure following the Democratic midterm sweep.
Asian chip stocks plunge as Democratic sweep in U.S. midterms fuels AI sector jitters
Asian semiconductor stocks experienced a sharp decline on Thursday, as investors reacted to a sweeping Democratic victory in the U.S. midterm elections and its potential implications for the artificial intelligence sector. Japanese chip-testing equipment maker Advantest plunged 11.69%, with Lasertec shedding 11.76%. Tokyo Electron fell 9.89%, and Renesas Electronics decreased by 6.37%. Tech-focused investment firm Softbank Group was down over 6%. South Korean chipmakers also faced heavy selling pressure, with SK Hynix slumping 9.03% and Samsung Electronics dropping 6.65%. The sell-off is attributed to concerns that a Democratic-controlled Congress might impose tighter regulations on data-center development, potentially reducing demand for AI-related infrastructure and chips.
South Korea's Kospi drops over 2%, Japan's Nikkei 225 gains 0.5%
Asia-Pacific markets opened with mixed results on Thursday. Japan's Nikkei 225 gained 0.49%, and the Topix rose over 2%. In contrast, South Korea's Kospi was down 2.33%, and the tech-focused, small-cap Kosdaq fell 1.24%. Australia's S&P/ASX 200 saw a gain of 1.39%.
Asia markets set to track Wall Street rally after sweeping Democratic midterm victory
Asia-Pacific markets were expected to rise on Thursday, mirroring an overnight Wall Street rally. A decisive Democratic victory in the U.S. midterm elections eased political uncertainty, and a significant drop in oil prices further boosted investor sentiment. Democrats securing control of both chambers of Congress raised expectations of legislative gridlock, potentially restraining President Donald Trump's policy agenda. Trump's acceptance of the election results also contributed to investor calm. Crude oil prices plunged over 8%, as investors anticipated increased pressure on the Trump administration to end the Iran war following Republican election losses.
Arm, Coherent, Expedia among the names making moves after the bell
Several companies made significant moves after the bell. Arm Holdings shares dipped almost 2% despite the CPU designer reporting strong adjusted earnings of 52 cents per share, exceeding analyst estimates of 47 cents. Expedia tumbled over 7% due to weaker-than-expected guidance for the current quarter, forecasting revenue between $3.69 billion and $3.75 billion against an expected $3.74 billion. Conversely, Coherent, an optical materials company, gained 7% after beating adjusted earnings estimates with $2.09 per share (vs. $1.99 expected) and providing strong current quarter guidance.
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Stock futures open flat
Futures tied to the Dow Jones Industrial Average opened with a 69-point rise (0.1%). S&P 500 futures were up 0.1%, and Nasdaq-100 futures also advanced 0.1%.
