According to Jin10, Democrats won control of both the House and Senate after the U.S. midterm elections, reducing policy uncertainty as technology stocks broadly rose on Wednesday. Amazon gained about 8% intraday, Google rose more than 6%, Microsoft advanced more than 7%, Meta climbed about 3%, and Apple added nearly 7%.
JPMorgan Asset Management Global Chief Strategist David Kelly said a Republican-led White House and Democratic control of Congress could ease pressures on economic growth and inflation and reduce market uncertainty.
AI data center construction faces the risk of tighter regulation. Of 41 related local referendums, 40 produced results unfavorable to data center construction. Analysts said higher regulatory barriers could strengthen large cloud providers’ competitive advantage. Amazon, Microsoft, and Google have substantial financial resources and established data center construction and operations capabilities, while emerging AI cloud providers face greater pressure. Emerging AI cloud provider CoreWeave fell about 10% on Wednesday.
Macquarie analysts said companies with ample funding, secured power supplies, and the ability to build projects are better positioned, and that demand for AI infrastructure investment has not disappeared.