US midterm results split Wall Street: tech giants surge, chip and defence stocks slide

Wall Street rallied sharply after Democrats won control of both chambers of Congress, with the S&P 500 rising 1.6 percent and the Dow jumping 3 percent, though gains were uneven across sectors. Technology giants like Microsoft and Amazon surged, while data centre operators, chipmakers and defence stocks tumbled as investors reassessed the impact of divided government on regulation, spending and policy. Lower oil prices also boosted markets. The political shift could slow AI infrastructure expansion and defence budgets, benefiting established tech firms with existing resources. Investors now watch for legislative gridlock effects on corporate spending and potential stricter data centre rules.