Trump’s midterm rout hits Wall Street tech and oil stocks

Wall Street expects tech stocks and oil prices to fall after Republicans suffered a historic midterm defeat, losing control of both houses of Congress. Tesla and SpaceX indicated pre-market drops of 4% and 3%, while data centre firm Cipher was set to fall over 7%. Traders reacted negatively to AI-related stocks amid a US backlash against data centres, with projects likely shifting to friendlier states. US bond yields fell, the dollar declined, and Brent oil dipped to $102.8 a barrel. The results are the worst for a sitting president since 1946. Analysts warn the "blue wave" could prompt President Trump to escalate the Iran war, potentially pushing oil above $120 a barrel. However, some expect policy continuity via executive action, though Democrats controlling the Senate may create hurdles for AI and tech legislation.