Markets cool after strong midterm rally

Wall Street saw mixed results after a strong rally that drove the Dow to its best day in over a year and a half. Futures are now mixed as investors assess the implications of the new Democratic majority in Congress.

The rally was partly fueled by a sharp drop in oil prices, with Brent and WTI falling over 8% in Wednesday's session. The Trump administration acknowledged the role of the Iran war in the poor Republican performance.

Asian markets had a mixed performance, with Japan's Nikkei and South Korea's Kospi falling sharply despite broader market strength. European stock markets, however, remained broadly higher.

Elon Musk's companies, including Tesla and SpaceX, continued to face pressure in premarket trading, down over 3% following his failed $474 million election bet. Musk now has fewer allies in Congress and more challenges in Texas.

Qualcomm shares fell over 9% in premarket trading after its fourth-quarter smartphone chip sales missed expectations. Analysts noted that the company's data center business is not enough to offset the losses from its smartphone division.

Cryptocurrencies saw a cautious rebound as investors evaluate the potential impact of the new Democratic Congress on Washington's stance. Bitcoin remains near $80,000, with experts suggesting no immediate changes to the regulatory environment for crypto.