Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, US, November 2, 2026.

Stock futures dropped as traders speculated that Democrats were headed for majority control of Congress and some key gubernatorial wins in the 2026 U.S. midterm elections.

Futures tied to the S&P 500 traded 1% lower, while Nasdaq-100 futures shed 1.7%. Futures tied to the Dow Jones Industrial Average were down 341 points, or 0.6%.

CNBC's Election Desk projected that Democrat Josh Turek will win the race for U.S. Senate in Iowa. The Democratic Party is now projected to win both chambers of Congress, according to The Associated Press.

Meanwhile, in Texas, Democratic governor candidate Gina Hinojosa is the winner over Republican incumbent Greg Abbott, The AP projected. Hinojosa has pledged a moratorium on data centers in the key tech hub.

If Democrats are able to secure a sizable majority in the Senate — the so-called blue wave scenario — the market and especially stocks related to the artificial intelligence buildout could come under pressure, according to some on Wall Street. Investors fear a big Democratic win could mean more restrictions on data centers nationwide. AI-linked stocks have already pulled back in recent weeks on concern about a slowing pace in data-center spending.

Big Tech shares Microsoft , Amazon and Nvidia were all trading lower in extended trading. High-risk data center play CoreWeave was down 6% in Robinhood overnight trading. Elon Musk's SpaceX was also off by 6% on Robinhood.

Equities "trended lower as it's looked more likely that Democrats are going to pick up the House and most likely the Senate," said Anthony Saglimbene, chief market strategist at Ameriprise Financial.

"I think it'll be more interesting on how the governorships go," Saglimbene added. "If you get some governorships that are Democratic, what does that mean for the data center buildout, which has already seen a lot of skepticism over the last couple weeks in terms of the hyperscaler capex spending."