Democrats winning control of the House and Senate after the US midterms reduced
policy uncertainty and sent tech stocks higher on Wednesday: Amazon (AMZN.O)
rose about 8% intraday, Google (GOOG.O) gained over 6%, Microsoft (MSFT.O)
climbed more than 7%, Meta was up ~3% and Apple nearly 7%. JPMorgan Asset
Management global chief strategist David Kelly said a Republican White House
paired with a Democratic-controlled Congress could help ease growth and
inflation pressures and lower market uncertainty. Separately, AI data center
construction faces regulatory tightening: 40 of 41 local ballot measures were
voted against data center development. Analysts say higher regulatory thresholds
may reinforce the competitive advantage of large cloud providers, which have
deeper balance sheets and established data-center build and operation
capabilities, while emerging AI cloud players will be under greater pressure;
CoreWeave (CRWV.O) fell about 10% on Wednesday. Macquarie analysts added that
firms with ample capital, secured power supply and construction capacity are
best positioned and that demand for AI infrastructure investment has not
disappeared.
