Part of Midterm Approval Collapse · 20 stories · since Oct 14 · newest 3d ago
Nasdaq Correction Hits as AI Trade Unwinds Two Days After Midterm RallyTraders rotate into Big Tech on bets Democrats will slow AI spending
4 Nov 4 1:00 PM · 3d ago · 38 articles · 2 videos · 14 posts · 32 comments · 5 sources · development 4 of 6
Bloomberg reported that megacap tech stocks, including Apple which has avoided heavy AI capital spending, surged as investors bet a Democratic Congress would restrain aggressive AI infrastructure buildout, with five tech giants adding nearly $1 trillion in value that day.
“Together with Apple Inc., which has avoided heavy AI spending and leaped more than 6%, the five tech behemoths are on pace to add nearly $1 trillion in market value on Wednesday.”
BloombergDemocrats 2026 midterm election winners
Donald Trump U.S. PresidentWall Street traders/investors Market participantsBig Tech / AI infrastructure companies Affected sector (hyperscalers, chipmakers, data-center builders)
The whole story articlesvideospostscomments the bright band is this development · numbered dots are the others · click one to jump
What was reported 5 claims about this development
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first by Bloomberg Politics, 4d ago · also Hindustan Times, ABC News, CBS News
4 more headlines
- AI, defense stocks slide as clean energy shares rally after Democrats take control of Congress Hindustan Times · 4d ago
- Stocks, Bonds Fluctuate After Democrats Win Control of US Congress Bloomberg Politics · 3d ago
- Dow surges 1,000 points as Democrats take control of Congress ABC News · 3d ago
- Stocks soar after Democrats take control of Congress CBS News · 3d ago
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first by Bloomberg, 3d ago · also Quartz, Bloomberg Markets
1 more headline
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first by Guardian Business, 4d ago · also Guardian
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first by Bloomberg, 2d ago
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first by Bloomberg Tech, 3d ago
On air 2 segments · click to watch, arrow keys to move
What people said 24 voices · best of 35 · verbatim
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Yeah moved towards hyperscalers and cut semis a bit. All suggests people are betting on data center rollout slow downs due to how many states voted directly on data center propositions in addition to blue wave. Texas turning blue was a big one too. So that would mean rotation into companies with existing large data center infrastructure, cutting…
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LOL ROFL LMAO "US stocks soared Wednesday as Wall Street digested the resounding Democrat sweep in the midterm elections and mulled what a divided government will mean for the war with Iran, President Donald Trump’s policy agenda and the AI trade." https://www. cnn.com/2026/11/04/investing/u s-markets-midterm-elections
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Historically, a Republican President with a fully Democratic Congress is one of the lowest-performing political setups for the stock market. While the S&P 500 typically loves a split government, this specific combination has historically underperformed compared to other Washington layouts. The Returns: The S&P 500 averages an annual gain of only…
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To me, this is a shocking repudiation of the orange cockwomble and his "policies", by his favorite institution, the Stock Market. Dow has best post-midterm elections day in 44 years as Democrats take control of Congress | CNN Business https://www. cnn.com/2026/11/04/investing/u s-markets-midterm-elections
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Historically the markets perform very well after midterms, especially when the results lead to a mixed government, as it stops one party from doing whatever they want and forces parties to compromise. I know there are some fears that Dems will push back against AI/data centers, and verbally they might, but they can't, as those businesses…
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Stocks Rise as Democrats Flip Control of Congress https://www. nytimes.com/2026/11/04/busines s/midterm-elections-stock-market.html?utm_source=flipboard&utm_medium=activitypub Posted into Most Emailed @ most-emailed-newyorktimes
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The long term damage, not only in the direct effects to our economy and international relationships, but i n all of the knock on effects of undermining trust in democratic institutions, is going to take decades to unwind at a minimum. We also have 20+ years of under resourced education with declining student achievements year over year that, even…
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I saw a report a little while back showing that, despite what you might hear from Texas conservatives about California transplants moving to the state and trying "ruin it", the only reason Texas was still red was due to the high number of conservative transplants moving there from blue states. If you looked at the polling numbers from life-long…
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Will it stick, though? Not sure. There's already some major speculative capital in both sectors (and thematic etfs), it seems there's no space for the "surprise boom" for these innovations, if they are already frontrunning inexistent forward guidances, before there is even a hint of a major breakthrough tl;dr: Could be the new tullip, but could…
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This just seems like an excuse to justify the price action. The Democrats significantly exceeded expectations on all levels. There was no way that they could have realistically gotten a stronger result than the one they got last night. I think a far more plausible explanation is that futures were the knee-jerk reaction and futures do not always…
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Absolutely not true. They’re still based on stocks which trade 24 hours a day and in different markets. Korea and Japan were down huge last night before reversing. As were all the major megacaps. Futures aren’t just made up. If you make the argument that futures mean nothing then you can also make the argument that the SP500 or Nasdaq mean nothing.
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They aren't going to trade at crazy multiples forever though, either they will grow into their multiple or their stock will eventually crash. That's how growth stocks have always worked. Over the long term fundamentals matter. And which tickers specifically are you bag holding? Are the fundamentals truly exceptional, or are you a bit biased?
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Basically the difference between how big the landslide was. A bigger Democrat win, would have crashed the market. Democrats don't have enough seats to do much. Even with comfortable majority in both houses they still need Republicans to pass laws. When the government can't do much the market ripped forward.
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No, the market doesn’t give a flying fuck about politics. It loves certainty. And a gridlocked government means no major legislation will get done for 2 years so businesses can solely focus on operations. Reddit is so annoying when partisan folks swarm every single subreddit after major events.
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Trump still holds veto power. Dems needed a 2/3rd majority to be able to out-veto Trump. So, no matter which law/policy change they want do in the next two years, Trump can just petulantly say no. It is still historic and Dems just got the power to the brakes from the Reps but not the steering.
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Just go and buy some sensible diversified ETFs. Individual stock picks aren't about 'inspiration,' that shit is gambling. At least if youre thinking long term... Study after study shows you likely aren't as good at picking as you'd like to think when averaged out over decades.
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If they burst the AI bubble like half of us on reddit will get laid off. You think these companies that got vaught pants down and everyone else who invested all the hedge funds in them will just go "oh ok"? They will fire everyone to save costs and we still lose in the end
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I’m not saying it’s a good idea. You get companies like OpenAI having their special “ethics board” that gets to guide direction without having a financial stake. They’re leaning hard into promoting the idea of self-regulation to head off a push for government regulation.
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It’s why I never, ever believe that the stock market is anything other than sentiments. "In the short-run, the market is a voting machine, but in the long-run, the market is a weighing machine." Keeping mind that the long run can mean a decade or more.
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Every single seat, which has happened before. If they had a larger victory, with a big enough majority to do basically whatever they wanted, the Market would have crashed. Government inaction and bureaucratic grid lock is good for markets.
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The AI trade definitely needs something more than basically spam generation to be its front running narrative. I’d love to see robotics and biotech out in front instead of chatbots and glorified note-taking apps.
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08 was a bigger result for Democrats. They had enough votes to do anything they wanted. They did absolutely nothing and fell to infighting and bickering
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Maybe it’s green because for once in a long time , Republicans weren’t petulant little bitches lying about how they can never lose legitimately.
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??? How could you get bigger than a complete sweep. Dems won almost every seat that mattered . It’s a political wipeout and a historic event.
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