Wall Street Likely To Open On Mixed Note

(RTTNews) - U.S. stocks are seen opening on a mixed note Thursday morning. Tech stocks are likely to be under pressure amid speculation the Democrats controlled Congress will possibly try to enforce greater regulation of the AI systems.

The Dow futures are up 0.58 percent. The S&P futures are up marginally, while the Nasdaq futures are down 0.88 percent.

The mood is likely to remain a bit cautious with investors looking ahead to the non-farm payrolls data due on Friday.

The markets will continue to react to quarterly earnings updates.

Data on labor productivity for the third quarter, and initial jobless claims for the week ended October 31 are due this morning.

Wall Street closed on a strong note on Wednesday as investors reacted positively to the Democrats' victory over the Republicans in the U.S. midterm elections.

The shift in Congress has raised hopes that there will be more resistance to the current administration's plans to prolong the conflict with Iran as well as on tariffs.

President Donald Trump's apparent willingness to accept the results and work with Democrats to address political issues presumably helped offset concerns about increased regulatory scrutiny under a Democrat-controlled Congress.

The major averages all closed with strong gains. The Dow surged 1,569.40 points or 3 percent to 53,356.12, a two-month closing high. The S&P 500 jumped 119.70 points or 1.6 percent to 7,688.62 and the Nasdaq climbed 364.50 points or 1.4 percent to 25,736.51.

In overseas trading, Asian stocks ended mixed on Thursday as regional chipmaking shares slumped on expectations of tighter tech oversight.

Technology stocks slumped in South Korea and Japan on concerns that a Democratic-led U.S. Congress could push for tighter regulation of AI development and data center construction, which could lead to a slowdown in capex.

The major European markets are up firmly in positive territory as investors react to a slew of earnings announcements. Easing concerns about inflation and optimism about corporate earnings contribute to the positive mood in the markets.

In commodities, West Texas Intermediate Crude oil futures are up $1.35 or 1.51% at $89.47 a barrel. Gold futures are gaining $0.56 or 1.37% at $4,129.00 an ounce.