US stock markets react to Democratic victory in the midterm elections

Markets reacted to the shift in the balance of power in Congress

US stock markets remained highly volatile on Wednesday, November 5, following the midterm elections of November 3, in which, according to unofficial results, Democrats won more seats than Republicans in both chambers of Congress. Anadolu reported this. The newly elected members of Congress will take office on January 3, 2027, but investors are already pricing in possible policy changes in artificial intelligence, cryptocurrencies, energy, and tariffs.

Tech giants versus AI infrastructure

The market reaction proved sharply asymmetric. Apple shares closed up 5.3% at a record high, Microsoft gained almost 7%, Amazon more than 6%, Alphabet over 3%, and Meta 1.5%; together, the five tech giants added roughly $1 trillion in market capitalization in a single day. According to the publication, investors' reasoning rests on Democrats' campaign promises to regulate AI development and slow data center construction: this would allow large companies to cut multibillion-dollar investments and return to positive free cash flow. The losers turned out to be those who make money on this infrastructure: Nvidia fell 3.2% and lost its status as the world's most valuable company, Micron dropped 7%, Intel 3.8%, and Broadcom 2%. Data center operators suffered even more: Hut 8 plunged 23%, IREN more than 11%, Core Scientific over 10%, and Applied Digital almost 7%. The publication links these losses to Democratic victories in Texas and Georgia, where public discontent with data centers is growing.

Oil, green energy, and defense

Brent futures for January delivery fell 9% on expectations that a Democratic Congress would pressure the Trump administration to end the war with Iran; Exxon Mobil shares dropped 4.6% and Chevron 3.7%. Against expectations of tighter regulation of the oil industry and support for clean energy, shares of solar companies First Solar, Sunrun, Enphase Energy, and Canadian Solar rose (1–7%), wind companies Orsted and Vestas (4–6%), hydrogen company Plug Power (3.5%), and battery company Fluence Energy (more than 10%). The defense sector came under pressure on expectations that the new Congress might reject President Donald Trump's $1.5 trillion defense budget: Lockheed Martin lost 7%, Northrop Grumman 4.5%, and RTX 2.6%. The publication separately notes pressure on Elon Musk's companies: after he spent nearly $500 million supporting Republican candidates, primarily in Texas, the historically 'red' state nonetheless flipped to the Democrats, and SpaceX shares fell almost 4% and Tesla 3.3%. All figures are based on data from a single publication for a single trading day and reflect market expectations, not decisions already adopted by the new Congress.