Democrats' midterm sweep hits AI data centers, lifts renewables

US stocks shifted sharply after Democrats won control of Congress in the midterm elections, with AI data center shares falling while renewable energy and healthcare stocks rallied. Investors repositioned for potential tighter AI oversight and continued clean energy support. Data center operators including Core Scientific and CoreWeave declined as a Democratic-led Congress raises prospects for hearings on the AI buildout, though analysts doubt legislation could stall construction. Solar firms First Solar and Sunrun gained on expectations of continued federal clean energy support, while defense contractors fell on concerns over the $1.5-trillion budget request. Shares of Elon Musk-linked companies SpaceX and Tesla dropped, with analysts citing potential merger scrutiny, while prison operators GEO Group and CoreCivic declined on possible immigration policy changes. Hospital operators and insurers rose on hopes for increased government healthcare spending.