S&P 500 futures rise as chip stocks rebound on Election Day

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S&P 500 futures rise as chip stocks rebound on Election Day
PrimeXBT Editorial Team
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S&P 500 futures rose on Election Day as investors moved back into technology stocks, led by chipmakers, while oil fell on speculation of progress in Iran-U.S. negotiations. Apple's weak margin forecast pulled Dow futures lower.

S&P 500 futures rose on Tuesday as investors returned to key technology stocks after recent pressure. Oil fell ahead of the U.S. midterm elections.

Chipmakers lift Nasdaq-100 futures

Futures tied to the S&P 500 rose 0.2%, while Nasdaq-100 futures jumped 0.8%. However, Dow Jones Industrial Average futures traded down 127 points, or 0.2%, weighed down by Apple shares.

Apple fell 4% after it rolled out a disappointing margin forecast, and iPad sales in the fiscal fourth quarter missed estimates.

Micron Technology jumped almost 4%, while Advanced Micro Devices and Intel each rose more than 3%. Broadcom and Nvidia gained around 2%.

S&P 500 and Nasdaq-100 futures drew support from those chipmaker gains.

Oil slips on Iran talks

Oil prices turned lower on speculation that there was progress in Iran-U.S. negotiations. Brent crude was down almost 3% at around $101 per barrel, and West Texas Intermediate futures dropped nearly 2% to around $94 per barrel.

Stocks are coming off a mixed session. The S&P 500 fell 0.51% and the Nasdaq Composite dipped 1.07% as investors continued their rotation out of tech stocks. The Dow rose about 214 points, or 0.41%.

Midterm outcome could weigh on stocks Wednesday

Prediction market traders see a nearly 75% likelihood of Democrats taking the Senate. A Democratic sweep of the House and Senate could weigh on the broader market on Wednesday and spark a sell-off in artificial intelligence stocks especially, as investors have not firmly positioned for that outcome. If Republicans retain control of the Senate or both chambers, the market may see gains in the short term.

Ryan Detrick, chief market strategist at Carson Group, told CNBC that markets may find some calm once the elections are over: "There’s some anxiousness before these elections."

Treasury yields edged higher as voting began. The 10-year yield rose more than 1 basis point to 4.9105%, according to CNBC.

Source: CNBC

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