Wall Street rises on split Congress; data centre stocks slide

US stocks opened higher on Wednesday as investors bet a divided Washington after Democrats' midterm sweep would limit sharp policy shifts, though data centre-related stocks fell on AI regulation concerns. The Dow rose 1.9 per cent, while the S&P 500 and Nasdaq each gained 1.1 per cent. Democratic wins in key data centre states like Texas and Georgia could lead to short-term moratoria on expansion, potentially affecting about 45 per cent of planned US capacity, according to Goldman Sachs. Data centre operators and power suppliers, including CoreWeave and Vistra, slid sharply. The AI trade has faced recent pressure as investors worry about Big Tech's soaring spending with little evidence of returns, and the Nasdaq 100 confirmed a technical correction on Monday. Analysts noted any curbs on AI development could threaten US economic growth.