U.S. Futures Rise after Midterm Election Results

U.S. futures jumped on Wednesday, as midterm elections played out as expected, with Congress split after Democrats won the House of Representatives but Republicans kept control of the Senate.

The S&P 500 futures rose 20 points or 0.75% to 2,779.75 as of 6:50 AM ET (11:50 GMT) while Dow futures were up 153 points, or 0.60%, to 25,794.0. Meanwhile tech heavy Nasdaq 100 futures increased 73 points, or 1.05%, to 7,090.25.

Investor confidence was boosted after the midterm elections, as a gridlock in Congress has historically given strong returns in equity markets.

The results were in line with forecasts and seen as a referendum on U.S. President Donald Trump’s term.

Despite the split, Trump tweeted that the elections were a “tremendous success.”

Meanwhile, the Federal Reserve begins its two-day policy meeting. While no rate hike is expected, traders expect the Fed to raise rates in December.

Earnings season continues, with results from Twenty-First Century Fox Inc, Qualcomm, Office Depot Inc, Humana, and others.

Cloud communications company Twilio Inc surged 16.87% after its earnings came in higher than expected, while General Electric rose 2.44% and Apple gained 1.09%. Intel gained 1.44% while Microsoft was up 1.28% and JPMorgan inched up 0.91%.

Elsewhere, Zillow Group Inc slumped 19.39% after its third quarter revenue missed estimates. Sprint Corp fell 2.90% while DexCom Inc was down 2.23%.

In commodities, gold futures rose 0.97% to $1,235.70 a troy ounce while crude oil futures increased 0.74% to $62.67 a barrel. The U.S. dollar index which measures the greenback against a basket of six major currencies, fell 0.62% to 95.52.