The blue wave across the country has rippled through the stock market too, driving healthcare and clean energy names higher and data center plays and defense companies tumbling.
The broader market soared after Democrats won control of both the House of Representatives and the Senate, and key gubernatorial races in Texas and Georgia. In Washington, the Democratic Congress will now serve as a counterweight to President Donald Trump's agenda, which has included tax cuts and policies that sent inflation, like tariffs and the Iran war.
Local and state elections will also have an impact on data center stocks, with construction limits passed in some states and a Democratic governor-elect in Texas who promised a moratorium.
"Democratic control could slow the push for deregulation in financials, energy and digital assets," Wells Fargo Investment Institute said in a note Wednesday. "We still believe both parties have an incentive to compromise on data center location and AI generally."
Here are some of the biggest movers as a result of the election outcome.
Nextpower and Canadian Solar both jumped more than 11%, while Plug Power gained 7.5%, First Solar climbed 8% and Sunrun rose 5%. Nextera Energy added 4%. Investors are hoping that Democrats will push back against the Trump administration's rejection of clean energy policies.
Healthcare companies rallied on investor optimism over a slowdown or reversal in healthcare spending cuts, and the potential that enhanced subsidies will extended in Affordable Care Act plans.
Molina Healthcare and Centene gained 8% and 9%, respectively. HCA Healthcare and Universal Health Services each jumped 10%, while Tenet Healthcare rallied 9% and Elevance Health added 4%.
Elon Musk's SpaceX and Tesla each shed more than 2% after Democrats won the gubernatorial, Senate, and attorney general races in Texas, as well as wresting control of the Texas House of Representatives . Musk, CEO of both companies, spent at least $474 million backing Republican candidates in the midterms, including $224 million in the Lone Star State, where both Tesla and SpaceX are headquartered.
Defense companies could face headwinds if Democrats challenge military spending. Shares of RTX slipped 3%, Lockheed Martin tumbled nearly 7%, Northrop Grumman sank roughly 5% and Howmet Aerospace fell 4%. Palantir Technologies shed nearly 3%.
The Trump administration has requested $1.5 trillion for national defense in fiscal 2027. It is also separately asking for an $87.6 billion supplemental appropriation from Congress for fiscal 2026, largely due to the Iran conflict.
Drone stocks also fell. Kratos Defense & Security Solutions dropped 10.5%, while AeroVironment and Red Cat lost 9%. Ondas shed 7% and Unusual Machines tumbled 9.5%.
Names connected with data centers moved lower amid concern about the potential for restrictions or moratoriums being placed on AI infrastructure buildouts.
Neocloud provider CoreWeave , the poster child for fears over massive AI-related debt, slumped 9%. Peers Nebius and Iren dropped 6% and 10%, respectively.
AI infrastructure stocks also tumbled, with Comfort Systems losing 16% and Vistra sliding 14%. Micron Technology fell 5%.
That said, five of the Magnificent Seven rallied. Apple and Microsoft were both up more than 6%, with Apple touching an all-time high, while Alphabet gained 4% and Meta added 3%.
A consumer relief trade also took hold, sending housing, travel and consumer staples stocks higher. Affordability was a big theme in the election, with Americans feeling the pressure of high prices.
Housing stocks like Pulte , D.R. Horton and Lennar gained roughly 8%. Airlines also moved higher, with United Airlines and American Airlines both rising about 8%, Southwest Airlines gaining nearly 7% and Delta Air Lines climbing 6%. Cruise operator Carnival jumped 7%, while Royal Caribbean and Norwegian Cruise Line added 6%. Booking Holdings rallied nearly 11%.
Consumer staple names also caught a bid. Dollar Tree soared nearly 10%, Walmart gained 4.5% and Constellation Brands climbed 7%. Dollar General advanced more than 6%, while Conagra Brands increased roughly 7%.
The GOP's wide losses also extended dragged down President Donald Trump's social media and tech company , which fell nearly 16% to a 52-week low.
— CNBC's Luke Fountain, Dominic Chu and Nicholas Wells contributed reporting.
