The U.S. blue wave also sent ripples through the stock market, with health care and clean energy names rising, and data center and defense companies’ stocks falling.
Democrats gained control of both houses of Congress, and key gubernatorial races in Texas and Georgia sent the overall market soaring. In Washington, a Democratic Congress will now play a role in countering President Donald Trump’s policies, including tax cuts, tariffs and inflationary policies like the Iran war.
Local and state elections will also have an impact on data center stocks, with construction restrictions passed in some states and Texas’ incoming Democratic governor promising a construction moratorium.
“Democratic control could slow the push for deregulation in finance, energy and digital assets,” Wells Fargo Investment Institute said in a note Wednesday. “We still believe there is an incentive for both sides to compromise on data center locations and AI in general.”
Here are some of the biggest developments resulting from the election results.
Victory for solar power and clean energy
next power and canadian solar Both rose more than 11%, but plug power increased by 7.5%, first solar rose by 8%; Sunrun Increased by 5%. nextterra energy Added 4%. Investors are hoping Democrats will push back against the Trump administration’s rejection of clean energy policies.
medical benefits
Health care companies rallied on investors’ optimism about slowing or reversing health care spending cuts and the possibility of expanded subsidies under the Affordable Care Act plan.
Molina Healthcare and Centene increased by 8% and 9%, respectively. HCA Healthcare and universal health services Each rose by 10%, but Tenet Healthcare 9% recovery, Elevance Health Added 4%.
Elon Musk loses
Elon Musk’s space x and tesla Each state fell by more than 2% after Democrats won the Texas gubernatorial, U.S. Senate and attorney general races and took control of the Texas House of Representatives. Musk, CEO of both companies, spent at least $474 million supporting Republican candidates in the midterm elections, including $224 million in the Lone Star State, where Tesla and SpaceX are headquartered.
Defense stocks take a hit
Defense companies could face headwinds if Democrats object to military spending. shares of RTX 3% down; lockheed martin down nearly 7%, Northrop Grumman down about 5%, howmet aerospace It fell 4%. Palantir Technologies It decreased by nearly 3%.
The Trump administration is requesting $1.5 trillion in defense spending for fiscal year 2027. Separately, it is also requesting Congress to spend an additional $87.6 billion in fiscal 2026, primarily due to the Iran conflict.
Drone stocks also fell. Kratos Defense and Security Solutions Although it decreased by 10.5%, aviation environment and red cat I lost 9%. Ondus 7% reduction, unusual machine It fell 9.5%.
Data center inventory falls
Names associated with data centers fell on concerns about potential restrictions or pauses on building AI infrastructure.
neo cloud provider coreweaveThe company, which is the poster child for concerns about massive AI-related debt, fell 9%. peer Nevius and Airen They decreased by 6% and 10%, respectively.
AI infrastructure stocks also fell, comfort system lost 16%, Vistra 14% slide. micron technology It fell by 5%.
However, the five members of the Magnificent Seven came together. apple and microsoft Both rose more than 6%, with Apple hitting an all-time high. alphabet 4% increase; meta Added 3%.
affordable deals
Consumer relief trading also took hold, with housing, travel and consumer staples stocks rising. Americans are feeling the pressure of high prices, and affordability was a major theme in the election.
Things like housing stocks Pulte, DR Horton and lenner It rose by about 8%. Airlines also rose; united airlines and american airlines Both rose about 8%, southwest airlines rose nearly 7%, delta airlines 6% increase. cruise operator carnival While it rose by 7%, royal caribbean and norwegian cruise line Added 6%. Booking Holdings rose nearly 11%.
Consumer staples stocks also led to bidding. dollar tree Soared nearly 10%, walmart increased by 4.5%; constellation brand It increased by 7%. Dollar General rose more than 6% and ConAgra Brands rose about 7%.
Trump Media & Technology Group
Significant losses for the Republican Party also hampered President Donald Trump. social media and technology companieswhich fell nearly 16% to a 52-week low.
—CNBC’s Luke Fountain, Dominic Chu and Nicholas Wells contributed reporting.
