Wall Street rallies after Democrats win Congress; data center stocks slide
SPY•U.S. stocks rallied after Democrats won control of both chambers of Congress, with the Dow up 2.3%, the S&P 500 up 1.72% and the Nasdaq up 2.13%. Data center stocks fell on concerns about tighter AI regulation.
1. Stocks rally
U.S. stocks rose as investors bet that divided government after Democrats won control of the Senate and House would limit sharp policy shifts. At 9:46 a.m. ET, the Dow was up 2.3%, the S&P 500 1.72% and the Nasdaq 2.13%.
2. AI stocks diverge
Data center operators IREN, Hut 8, Applied Digital and Core Scientific fell between 1.2% and 13% as concerns about tighter AI regulation weighed on the sector. AMD rose 4.8% in choppy trading after forecasting faster-than-expected 2027 growth.
3. Other movers
Amazon gained 7.1%, Alphabet rose 3.4% and Meta added 1.6%. Northrop Grumman, RTX and Lockheed Martin fell sharply, while the Invesco Solar ETF climbed 8.3%.
