Big tech stocks surge as Democrats win 2026 midterm elections

Major technology stocks surged Wednesday after Democrats won control of both the House and Senate in the 2026 midterm elections, with Amazon up 8%, Apple climbing nearly 7%, and Google rising over 6%. The market rally followed the removal of election uncertainty, as JPMorgan strategist David Kelly said a divided government would bring moderation in growth and inflation. However, stocks tied to Elon Musk and AI data centers fell, including Tesla down 2% and CoreWeave dropping 10%, after voters in 40 of 41 local ballot measures opposed data center projects. Analysts noted Democratic gubernatorial wins in Texas, Georgia, and Ohio, where candidates proposed data center moratoriums, could increase regulation. Larger cloud providers, or hyperscalers, are seen as better positioned to handle regulatory barriers, while smaller neoclouds face sentiment headwinds, though industry leaders say construction may not slow nationwide.