Democrats’ sweeping wins in Tuesday’s midterm elections shook up Wall Street this week, with some of the biggest moves in companies tied to artificial intelligence, The Associated Press reported.
Investors worried a Democratic Congress and new Democratic statehouse majorities could slow the construction of AI data centers, particularly in Texas, according to the AP. Nvidia, Lam Research and other AI-linked stocks swung sharply, while big cloud spenders like Amazon fared better.
Defense stocks fell on expectations that Democrats will push to end the U.S. war with Iran. Northrop Grumman, Lockheed Martin, RTX and General Dynamics dropped between 4% and 12% after Tuesday, the AP reported, though depleted weapons stockpiles could still mean resupply orders.
Oil exploration and refining companies, which have benefited as the war squeezed global supplies since February, also lost ground on the chance that peace could lower oil prices. Exxon Mobil and Phillips 66 still show solid gains for the year.
On the other side, hospital stocks rose on hopes that funding for some government programs could be restored or increased. Liquor makers and other companies hurt by tariffs gained on hopes for relief.
For Arizona, home to a growing number of data centers and chip plants, the debate over AI construction is one to watch closely.
Sources: KTAR News / The Associated Press. Thee Arizona Times uses AI-assisted reporting reviewed against the sources listed.
Photo: Balon Greyjoy / CC0 via Wikimedia Commons.
