US stock index futures are recovering earlier losses following the congressional elections, in which Democrats gained control of both chambers of Congress. President Donald Trump said he would accept the election results, easing political uncertainty and encouraging investors to buy stocks following the recent sell-off.
-
S&P 500 futures (US500) have recovered from an earlier decline of nearly 1.4% and are trading 0.8% higher as of around 10:40 AM GMT. A similar turnaround is visible in Nasdaq 100 futures (US100), which had fallen by more than 2% before fully erasing their losses and climbing 0.4%.
-
Such a sharp reversal suggests improving risk appetite, although the sustainability of the rebound will depend on how investors continue to assess the new balance of political power in Washington.
-
Despite initial concerns about how technology stocks might react to a Democratic victory, the market is showing little sign of these fears roughly three hours before the US opening bell. The Nasdaq 100 has rebounded sharply, supported in part by stronger-than-expected quarterly results released yesterday by AI infrastructure beneficiaries AMD and Arista Networks.
US500, US100 (H1 Timeframe)
US500 futures are staging a clear V-shaped recovery and approaching the 200-period exponential moving average (EMA200, red line) on the hourly chart. If the index breaks above the 7,700-point barrier, the next important resistance levels could be around 7,820 and 7,900 points, with the latter area close to the all-time high. Key support is located at 7,500 points, marked by the local low established during the initial market reaction to the election results.
Source: xStation5
For US100, the 28,900–29,000-point area currently appears to be an important resistance zone, coinciding with the EMA200 (red line) and a region where significant price reactions have previously occurred. Support is located around 27,500 points, corresponding to the local low established during the recent sell-off.
Source: xStation5
BREAKING: US Labor Market Stronger Than Expected. ADP Report Surprises Ahead of Government Data
Market Wrap: European Stocks Rise Following US Elections
Spain Is Back on Its Feet 🚀 Trump's Nemesis Makes a Comeback After the Midterm Elections 📈
BREAKING: Democrats take both chambers of Congress🗽
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.