Stock futures rise as Dems take House

Stock futures rise as Dems take House
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U.S. stocks are on track to open with strong gains on Wednesday after Democrats appeared to secure a House majority.

Dow Jones Industrial Average futures had risen 164 points by 6:30 a.m. Wednesday, implying a boost of 210 points once the market opens at 9 a.m. S&P’s 500 futures were up 22 points, implying an opening rise of 26 points, while a 80-point boost to Nasdaq Composite futures implied a 101-point gain.

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Democrats are projected to capture a majority of seats in the House, ending two years of total Republican control of the federal government. While the GOP defeat would derail any major tax-cut or deregulatory legislation, the Democratic House could pose other benefits for the financial sector.

An opening stock rally Wednesday could reflect relief from investors weary of President TrumpDonald John TrumpPaul Ryan defends Navy admiral after Trump's criticism Trump discussing visit overseas to troops following criticism: report Retired Army General: Trump is ‘acting like an 8th grader’ in attacking ex-Navy SEAL who led bin Laden operation MORE’s trade war with China and eager for potential bipartisan deals on infrastructure spending, a White House goal largely rejected by GOP lawmakers.

Democrats are expected to be a tougher check on Trump’s trade policy and have been skeptical of his renegotiation of the North American Free Trade Agreement (NAFTA). The new deal is subject to approval by Congress before Trump can sign it into law.

Easing trade tensions could boost U.S. retailers, manufacturers and farmers currently facing higher costs due to tariffs imposed by the Trump administration and retaliation from other nations.

Even so, the Democratic majority poses stark challenges to the financial services and tech industries. Democrats have pledged to probe sales scandals at Wells Fargo, financial connections between Trump and Deutsche Bank, and Silicon Valley titans with major influence on global affairs.

Pharmaceutical companies also face a threat from shared White House and Democratic interest in driving down prescription drug prices.