U.S. stock futures whipsawed overnight into Wednesday as traders digested Democrats' sweep of Congress, with early losses giving way to modest gains by early morning, according to Yahoo Finance's live markets blog. As of roughly 4 a.m. CST, Dow futures were up about 0.6%, S&P 500 futures had added around 0.2%, and Nasdaq-100 futures were hovering just above flat.

The moves followed a sharply negative open in premarket trading once networks projected Democrats would take both the House and Senate, a result Fox Business and other outlets initially described as a tumble for futures before markets stabilized.

Chips Slide, AMD Jumps

Nvidia and Micron each fell more than 1% in premarket trading as investors priced in the possibility that a Democratic Congress could push new limits on data-center construction and AI infrastructure spending, two of the themes that have powered this year's tech rally.

MIDTERMS MOVE MARKETS SHORT-TERM, RARELY LONG-TERM

Not every chip name suffered. AMD shares jumped roughly 6% in premarket trading after the company posted a Q3 earnings beat and raised its holiday-quarter guidance — a result the company reported Tuesday, before polls had even closed. Duolingo also climbed on strong user-growth numbers and upbeat guidance issued overnight.

Yahoo Finance markets analyst Jared Blikre noted that midterm elections tend to move stock prices in the short term but rarely have a lasting effect on markets over longer horizons, a pattern strategists said would likely hold again as Washington heads into two years of divided government.

Traders have plenty more to digest this week: earnings from Arm Holdings, McDonald's, Qualcomm, Novo Nordisk and Uber are all due in the coming days, any of which could outweigh the election reaction by Friday's close.