AI data center shares fell and clean-energy stocks rallied after Democrats seized control of Congress. Core Scientific and Iren dropped 3.5% and 3.6%, while First Solar gained 7% and Sunrun rose 6.1%.
Data center operators slipped in premarket trading, with Core Scientific down 3.5%, Iren down 3.6%, Applied Digital down 2.4% and CoreWeave down 3.8%. Investors weighed the prospect of tougher congressional oversight of AI development as concerns grew about soaring AI spending and uncertain returns. Analysts doubted legislation could meaningfully stall construction but said a Democratic-led Congress increased the likelihood of hearings and investigations.
Shares of solar maker First Solar gained 7%, residential solar installer Sunrun added 6.1% and Enphase Energy rose 3.6%. Clean-power developer NextEra Energy advanced 2.3%. The Democratic sweep could bolster expectations for continued federal clean-energy support, while Democrats plan to scrutinize efforts to roll back emissions rules.
Tesla fell 4.9%, and shares of SpaceX dropped 5.2%; an analyst said additional scrutiny could slow a potential merger between the companies. Defense contractors declined as analysts projected funding could fall short of expectations in a Democrat-led Congress. Hospital operators and health insurers gained, while GEO Group and CoreCivic fell 6.2% and 5.7%, respectively.
