Dow Jones futures pointed higher Thursday after a Wednesday rally tied to the Democrats' midterm wins and a drop in oil prices. Goldman Sachs, JPMorgan Chase and American Express led the Dow higher, while declines in certain tech names pressured Nasdaq futures. An investor at Tandem Investment Advisors cautioned that more volatility may lie ahead.
The Dow Jones Industrial Average was set for another strong day on Thursday, following a rally that came on the heels of a sharp decline in the price of oil and the Democrats' midterm wins. Contracts for Dow futures rose 389 points, or 0.7%, while S&P 500 futures were up 0.2% and Nasdaq-100 futures declined 0.5%.
Goldman, JPMorgan and Amex lead the Dow higher
Goldman Sachs, JPMorgan Chase and American Express were each up more than 1% to lead the Dow higher. Certain tech names moved lower in premarket trade, which kept S&P futures gains muted and pressured Nasdaq futures.
Individual moves diverged. Tesla fell 2% and SpaceX dipped 1.4%, and Qualcomm dropped 8% despite reporting earnings that beat estimates. AppLovin, however, surged almost 17% after better-than-expected results and guidance that beat estimates.
A 1,500-point Wednesday and a note of caution
On Wednesday, investors adjusted to midterm results in which Democrats flipped control of the House of Representatives and Senate. The Dow soared 1,500 points, while the S&P 500 and Nasdaq Composite popped more than 1% each.
Jordan Watson, a portfolio manager at Tandem Investment Advisors, said the rally and the rotation away from artificial intelligence names could be temporary. He said: "We may be headed for more volatility as investors digest the election results".
Kospi falls 5.28% while Hang Seng Tech jumps
In Europe, the FTSE 100 rose as much as 119 points to 10,948, its highest level since Aug 7. Traders also awaited the Bank of England's decision, with the market expecting a rate hike of 25 basis points to 4% from 3.75%.
Asia-Pacific markets closed mixed. South Korea's Kospi fell 5.28% to end the day at 5,383.8, while Hong Kong's Hang Seng Tech index jumped more than 5% as Chinese tech heavyweights rallied.
Source: CNBC
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