AI data-center stocks slide, renewables rally after Democratic US midterm sweep
SPY•AI data-center shares fell while clean-energy and healthcare stocks rallied after Democrats won control of Congress. Applied Digital dropped 4.1%, Cipher Digital fell 14.3%, First Solar gained 13.8% and Sunrun rose 12.5%.
1. Data centers under pressure
Data-center stocks slid as investors weighed the prospect of greater congressional oversight of the AI buildout. Applied Digital fell 4.1%, CoreWeave lost 5.3% and Cipher Digital dropped 14.3%. Utilities exposed to data-center projects also declined, including Vistra, down 9%, and Constellation Energy, down 5%.
2. Clean energy and healthcare
Clean-energy shares rallied on expectations of continued federal support and faster approvals for energy and infrastructure projects. First Solar gained 13.8%, Sunrun rose 12.5% and Enphase Energy added 10.2%. Hospital operators and health insurers also rose, with HCA Healthcare up 7.2% and Molina up 6.4%.
3. Other sectors move
Defense contractors fell as analysts expected funding to fall short of expectations under a Democratic-led Congress. Prison operators GEO Group and CoreCivic dropped 7% and 4.8%, respectively, reversing gains tied to expectations of increased immigration detention demand. Tesla fell 5.7%, while Trump Media & Technology Group lost 7%.
