US Midterms Leave Markets Cautious as Tech Rebounds and Oil Stays MixedUS Midterms Leave MarketsCautious as Tech Reboundsand Oil Stays Mixed

The S&P 500 and Nasdaq were set for a higher open as crude oil prices fell further heading into the vote, according to Reuters reporting. Brent crude fell 2.4 per cent, extending earlier declines as investors monitored talks on a peace deal between the US and Iran.

Apple shares fell 4.4 per cent in premarket trading after the company warned that rising memory chip costs would pressure its holiday-quarter margins.

Tech attempts rebound after AI correction

The Nasdaq-100 closed more than 10 per cent below its all-time high on Monday, confirming a correction as investors grow wary of Big Tech’s soaring AI spending and limited evidence of adequate returns. Chip stocks including Nvidia rose 2.8 per cent after four sessions of losses, helping the rebound attempt. Several tech firms have tapped bond markets to fund AI investments, raising concerns that debt-funded spending will be harder to justify if borrowing costs stay high.

Polls and nonpartisan analysts favour Democrats to take the House of Representatives from Republicans, while control of the Senate remains uncertain.

A divided Congress has historically been viewed as positive for markets because it limits new legislation, said Kim Forrest, chief investment officer at Bokeh Capital Partners, in comments carried by Reuters.

Morgan Stanley analysts said the elections should help remove a major overhang and that the market correction that began in June is in its final stages.

Oil swings matter for Kenyan importers

For Kenya and other African oil importers, the mixed oil prices matter directly. Brent crude has hovered near levels that translate to around KSh 13,500 ($104) a barrel in recent sessions, raising the risk of higher pump prices and transport costs if Middle East tensions escalate after the vote.

A sustained drop on hopes of a US-Iran deal would ease pressure on fuel importers and inflation. Mwenendo has reported how energy costs feed into Kenyan household budgets and growth forecasts.

Historical patterns show the S&P 500 has often risen in the months after midterms, but this year valuations are elevated and AI spending concerns linger. Results may take days to finalise. Markets will price the outcome for AI regulation, deficit spending and any shift in the US stance on Iran that could swing oil again.