Markets Rally as Democrats Sweep Congress, AI Trade in Focus

Markets rallied Wednesday after Democrats swept Congress in the midterms, with investors assessing implications for the AI trade and fiscal policy under a divided government. The Democratic control of both chambers creates gridlock, which historically supports markets, but state-level wins could impact data centers. Texas, accounting for roughly 25% of planned US capacity, saw Democrat Gina Hinojosa defeat Greg Abbott, a potential hurdle for AI expansion. The debt ceiling emerges as a key agenda item, with Republicans possibly raising it via reconciliation. Analysts say the AI-led bull market won't derail, though data center costs may rise, urging investors to scrutinize margins in upcoming earnings.