Wall Street closed sharply higher after Democrats won control of both chambers of Congress, while data center shares fell on concerns that tighter AI regulation could slow infrastructure growth. The S&P 500 rose 1.58%, the Nasdaq gained 1.44% and the Dow climbed 3.04%.
U.S. stocks closed sharply higher Wednesday after Democrats won control of the Senate and House, easing political uncertainty and boosting risk appetite. The S&P 500 gained 119.81 points, or 1.58%, to 7,688.73; the Nasdaq Composite added 366.26 points, or 1.44%, to 25,736.51; and the Dow Jones Industrial Average rose 1,575.38 points, or 3.04%, to 53,362.57.
Amazon.com, Meta Platforms and Alphabet rose as investors anticipated that slower AI infrastructure expansion could ease cash demands on large technology companies. Data center operators IREN and Hut 8 fell sharply, while Applied Digital and Core Scientific also tumbled; AMD dropped despite forecasting faster-than-expected 2027 growth.
Oil prices fell, aiding broader sentiment, while the dollar weakened against most currencies and long-dated Treasury yields moved lower. Defense stocks Northrop Grumman, RTX and Lockheed Martin declined as investors weighed the prospect that Trump's $1.5 trillion defense budget request could face a tougher path in Congress. Solar and clean-energy stocks rose.
