Dow Jones futures edge lower as US midterm election approaches

• Rising energy prices and political risks surrounding the US midterm elections weigh on US index futures.
• Despite robust revenue across the wider corporate technology sector, Apple and Palantir shares retreat in pre-market trading.
• Forthcoming results from major companies, including AMD, Pfizer and Shopify, take centre stage for traders.

A 0.5% fall leaves Dow Jones futures trading at around 51,880 during Tuesday’s European session. S&P 500 futures are down 0.15% at around 7,560, while Nasdaq 100 futures hold steady near 28,140.

Caution ahead of the US midterm elections weighed on US stock futures. With energy prices elevated by the ongoing conflicts with Iran, US President Donald Trump and the Republican Party face mounting political pressure.

Slower sales growth and fourth-quarter revenue guidance below expectations sent Apple shares nearly 3% lower in pre-market trading. Despite Q3 earnings exceeding forecasts, Palantir shares also fell almost 3%. By contrast, Anthropic announced that quarterly revenue had increased twelvefold and set out plans to invest more than $895 billion over the coming years.

Deepening losses in semiconductor shares weighed on Monday’s regular session: the S&P 500 fell 0.51% and the Nasdaq Composite lost 1.07%, although the Dow Jones advanced 0.41%. Attention now shifts to Tuesday’s major earnings releases, with AMD, SMCI, Pfizer, Shopify and Booking Holdings all due to report.

Tech and long-end Treasuries face pressure from a blue sweep, Societe Generale says

The political environment may continue to weigh on key market segments, according to economists at Societe Generale. They note that their US team “believes a blue sweep is likely and such an outcome may not be particularly conducive to a rebound in Tech stocks and would potentially set up another round of flattening in the long end of the Treasury curve.”