Whatever you call it: a blue wave, a blue tsunami, a blue blitz, last night's election results had the markets trading all over the place. Stock futures slid after it became apparent Democrats were having a good night. But the mood lightened after President Trump expressed willingness to work with Dems. At midday, the Dow is up nearly 3%, the S&P 500 up 1.8%, and the Nasdaq is up more than 2%.
Here is what is driving the markets today:
The clean are in the green: Wind and solar power stocks boosted on Democratic control of Congress. Companies such as First Solar, Sunrun and Nextpower all saw gains of at least 5% today. Plug Power was also up. Shares in wind turbine makers Vestas and Nordex are also climbing.
Data center downturn: Voters pummeled data centers at the ballot box last night. As of late Tuesday at least 10 towns passed measures to ban or restrict data center development. The four states primed for lots of data center development went squarely for Democrats: Texas, Ohio, Michigan and Georgia. Core Scientific, CoreWeave, Applied Digital and IREN are all down today. I wonder what AI has to say about the losses?
Don't take it personally: It's just business, right? Stocks tied to Elon Musk and Donald Trump are lower today. Musk poured $440 million into this year's election to support GOP candidates and causes only to see Democrats, who are eager to investigate Musk and his companies, flip the House and Senate. Musk joked on X, "Guess my election-interfering space lasers didn't work this time." Shares of SpaceX and Tesla are down more than 2% today. Shares of Trump Media, the Truth Social company, are down around 15%.
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