LIVE MARKETS-US stock index futures rise after Democrats win both House, Senate

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US STOCK INDEX FUTURES RISE AFTER DEMOCRATS WIN BOTH HOUSE, SENATE

US stock index futures are higher in early trading on Wednesday as investors weigh implications of the Democrats winning both the House and Senate in Tuesday's midterm elections.

Lower oil prices helped sentiment, along with gains in shares of Advanced Micro Devices AMD.O before the bell. The chipmaker reported quarterly results late Tuesday.

Investors said that change in Congress will likely complicate things for President Donald Trump, whose Republican Party currently controls both houses of Congress.

"While it was difficult to pinpoint exactly what the consensus was in recent weeks among equity investors for the outcome, we think many had been in the Split camp and were coming to terms with the possibility of the Democratic sweep outcome," writes Lori Calvasina, head of US equity strategy research at RBC Capital Markets, in an early Wednesday note.

In terms of the bigger picture, she notes, "we do see the decisive margins in both chambers as a positive for equity markets from the perspective of uncertainty being removed."

Some investors had been worried about how the vote might affect the massive AI buildout, considering the push amongst some voters to stop the building of data centers.

Brian Jacobsen, chief economic strategist at Annex Wealth Management, writes in a note: "With Democrats running both chambers and a Republican in the White House, gridlock is inevitable. President Trump has already said he will become 'Mr. Veto' if Democrats win Congress. He also said, 'at some point, we’ll probably make deals.' Still, he is likely to lean on executive orders. In other words, the next two years could look like the last two, only more so, with executive orders in place of legislation."

He says one thing to watch is any potential vacancies at the Federal Reserve Board or the Supreme Court because the Senate confirms judges, Fed governors, and cabinet officers. "A Democratic Senate could stonewall any nominations," he says.

Here is the early snapshot:

(Caroline Valetkevitch)

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