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US stock futures fell and the dollar weakened on Wednesday as investors awaited the results of the US midterm elections, with attention focused on whether Democrats could wrest control of Congress from President Donald Trump’s Republicans.

Democrat Jon Ossoff secured re-election in Georgia, marking the first major race call of the night as polls closed in seven states.

Democrats are widely favoured to take control of the House of Representatives, while both parties are engaged in a closely contested battle for the Senate, keeping investors on edge.

“For traders, the distinction between a narrow Democratic majority and a commanding victory is critical,” said Chris Weston, head of research at Pepperstone. “A narrow blue wave may be largely priced in.”

In the Senate, where at least nine races are considered competitive, Democrats secured their first victory among the 35 seats contested on Tuesday, with Senator Mark Warner winning re-election in Virginia as expected. Democrats need to gain four seats to secure control of the chamber.

Weston said the biggest market reaction would likely depend less on which party wins Congress and more on the size of its victory and how far the outcome differs from investor expectations.

US equity futures reflected the cautious mood, with S&P 500 futures falling 0.5 per cent and Nasdaq futures declining 0.9 per cent.

Asian markets, however, edged higher as technology stocks recovered following stronger-than-expected results from chipmaker AMD, easing concerns about the sustainability of the artificial intelligence (AI) investment boom.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.4 per cent, led by South Korean stocks, which rose more than 2 per cent in early trading. Japan’s Nikkei fell 1.5 per cent after returning from a holiday.

AMD forecast stronger-than-expected growth in 2027, supported by surging data-centre sales and its expanding challenge to Nvidia in the AI chip market.

The upbeat outlook, alongside better-than-expected third-quarter results, provided reassurance to investors amid growing concerns that the AI boom could be losing momentum. It also helped ease worries following rival Intel’s weaker outlook last week.

Meanwhile, oil prices remained volatile on Wednesday after falling to a four-week low in the previous session. Investors weighed diplomatic efforts to end the wars in Ukraine and Iran against concerns that fresh attacks in both conflicts could disrupt global supplies.

The effective blockade of the Strait of Hormuz, a critical shipping route connecting the Gulf with global markets, has added to uncertainty in energy markets. The waterway previously handled around 20 per cent of global oil supplies.

Disruptions to shipments through the strait have reshaped energy flows, fuelled inflation concerns and complicated expectations for global interest rates.