US Stocks: Futures Mixed After Wall Street Rally as Oil Prices Fall

US equity futures traded mixed early Thursday after Wall Street recorded its strongest session in months, supported by a sharp decline in oil prices and greater clarity over the Democrats’ midterm election victories.

Futures tied to the S&P 500 fell 0.3%, while Nasdaq-100 futures declined 1.17%. In contrast, Dow Jones Industrial Average futures gained 141 points, or 0.26%.

In after-hours trading on Wednesday, Qualcomm shares fell 6.5% despite the chipmaker reporting earnings above analysts’ expectations. Meanwhile, AppLovin surged nearly 24% after delivering better-than-expected results and issuing a stronger-than-anticipated outlook.

Wednesday’s rally followed a steep decline in oil prices. West Texas Intermediate crude futures dropped more than 8% to settle at $88.12 a barrel. The Dow jumped more than 1,500 points, or 3%, marking its best daily performance since April 2025. The S&P 500 also advanced 1.6%.

The market movements came after Vice President JD Vance attributed Republican losses in Tuesday’s midterm elections to the Iran war. The results saw Democrats gain control of both the House of Representatives and the Senate, securing comfortable majorities, while also winning several governorships.

Across Asian markets on Thursday, Japan’s Nikkei 225 rose 0.49%, while the Topix gained more than 2%. South Korea’s Kospi fell 2.33%, and the technology-focused Kosdaq declined 1.24%. Australia’s S&P/ASX 200 advanced 1.39%.

In the US, consumer discretionary stocks helped drive Wednesday’s gains, with Walmart shares rising more than 3% during regular trading. However, companies linked to data centre development, including CoreWeave, came under pressure amid concerns about growing opposition to the industry following election results in several states.

In Texas, Democratic candidate Gina Hinojosa won the gubernatorial election after calling for tighter restrictions on data centre development, adding to investor concerns about potential regulatory challenges for the sector.

Jordan Watson, a portfolio manager at Tandem Investment Advisors, cautioned that the market rally and shift away from artificial intelligence stocks could prove temporary. He warned that investors may face further volatility as they assess the election outcome and its potential policy implications.

Watson said Wednesday’s gains should not be interpreted as a signal that market risks have disappeared. Instead, he described the session as a reminder to reassess the scale of investment in AI infrastructure and whether those projects can deliver the returns investors expect.

US Democrats: Can They Deliver Lower Costs After Sweeping Midterm Victory?

Investors will now focus on weekly US jobless claims due on Thursday, followed by October’s nonfarm payrolls report on Friday.

On the corporate earnings calendar, Tapestry, Kimberly-Clark and ConocoPhillips are scheduled to report results before the market opens. Airbnb and Akamai are expected to release their earnings later in the day.