The session's earnings-driven rotation gave way by the close to a bigger story: Democrats have swept both the House and Senate in the midterms, and futures slid on the news. That outcome adds a fresh layer of uncertainty on top of an already volatile day of Iran headlines, with Brent down $1 to $102.60 a barrel and the 10-year yield easing to 4.9167% as investors digested both the election results and a heavy slate of earnings.

Chipmakers remained the dominant theme into the close. Arista Networks extended its advance to +9.4% after posting its strongest revenue growth since its IPO, while Advanced Micro Devices' results and CEO Lisa Su's comments on data center revenue doubling in 2026 and again in 2027 kept sentiment firm across semiconductors. Super Micro Computer rose 6.0% after Q1 revenue of $19.95bn blew past expectations, and Voyager Technologies added 6.2%. Skyworks Solutions was the session's worst performer, down 17.6%, extending earlier after-hours declines. Astera Labs slipped 4.1%.

Block gained 6.3% after reaching a deferred-prosecution agreement with the Department of Justice on its money-laundering program, a three-year deferral that removes a legal overhang alongside the company's guidance raise. Talos Energy rose 4.6%. On the downside, Unum Group fell 8.0% after underlying earnings missed on elevated group disability claims, SM Energy dropped 3.5% after lowering oil production guidance, and Revvity gave back 3.3% after an earlier post-earnings pop faded.

Geopolitically, the Iran standoff showed no resolution. Trump said "we seem to be getting everything we want," even as Saudi civil defense briefly activated an alarm over the Riyadh area before declaring the danger passed. Russia launched a large drone and missile barrage against Ukraine's energy grid overnight, knocking out power across several regions, while Trump voiced optimism that Moscow and Kyiv were nearing a deal, a view Ukrainian negotiators did not share.

With Democrats now positioned to control both chambers, attention turns to how markets price policy risk against an earnings season that has otherwise skewed constructive, particularly in semiconductors.

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