US Tech Stocks Rally as Investors See AI Spending Brake

American tech stocks surged on November 4, 2026, following US midterm election results, as investors anticipated that Democratic control of Congress would slow AI infrastructure spending and curb data center construction. Major companies saw significant gains, with Amazon rising about 8.3% and Apple nearly 7%, while Microsoft, Alphabet, and Meta gained 2-7%. Combined market value of the five largest tech firms could increase by over $750 billion, according to Reuters. Conversely, AI infrastructure operators like Applied Digital and IREN fell 6-13% on fears that construction restrictions would complicate their projects. Tech giants plan over $740 billion in capital expenditures for 2026, up from roughly $400 billion the prior year. Texas, potentially hosting 25-30% of future US data center capacity, elected Democrat Gina Hinojosa as governor, who supports a moratorium on new data centers. However, the Texas legislature remains Republican-controlled, and whether political pressure will actually slow construction remains uncertain.