Finance

Contracts linked to major U.S. stock indexes slid late Tuesday night into early Wednesday morning as early vote counts pointed toward significant wins for the Democratic Party. Futures tied to the Nasdaq 100 dropped 1.8%, while S&P 500 futures fell 1% over concerns regarding the potential impact of political shifts on future data center buildouts. Investors are bracing for heightened volatility as official tallies determine the future legislative balance of power in Washington.

Apple stock closed lower on Tuesday following its latest corporate earnings report, dropping roughly 3% to 4%. Although the consumer electronics giant outperformed consensus expectations on total revenue and sales, investors were discouraged by a softer-than-expected gross margin forecast of 45% to 46% for the current quarter. Analysts noted that elevated memory chip prices are beginning to squeeze profitability measures, overshadowing historical operational strengths.

Benchmark crude prices declined at the start of the week, with Brent crude dipping under $104 a barrel and West Texas Intermediate futures falling on renewed prospects for geopolitical negotiations. Temporary signs of de-escalation around the Strait of Hormuz helped cool energy markets and alleviate immediate global supply fears. The slide in energy costs has provided some breathing room for fixed-income markets by slightly curbing near-term domestic inflation expectations.