00:00Wall Street closed sharply higher on Wednesday as Democrats' sweeping midterm election victory is political uncertainty and boosted risk appetite.
00:10Though data center shares fell on fears on tighter AR regulations, Democrats seized control for both the Senate and House
00:18of Representatives,
00:19scoring wins in Republicans strongholds for the first time in generation in voter backlash against President Donald Trump.
00:28I think there's certainly parts of the economy that the Democrats, I mean, you're seeing that kind of today in
00:33what's been rallying.
00:34Some of the clean energy stuff has rallied and it's been dead for a long time.
00:37It seems to rally today.
00:38I'm not sure if that has any legs, but you kind of see that.
00:41Interestingly, the data center in particular, some of those neoclouds and some of the infrastructure has done poorly.
00:47I think that's somewhat reminiscent of what we saw last night where Florida elected a governor who's been kind of
00:53campaigning on data center buildouts,
00:54whereas Texas, Georgia, you've seen some governors that have been anti just to kind of the rapid buildout.
01:00I don't think you're going to get no buildout in these states, but I think it'll slow down.
01:04And I think some of the areas that have campaigned on it will see more of that.
01:07And there's going to be some uncertainty.
01:09What the market doesn't like is uncertainty.
01:11So you've seen some of this AI buildout.
01:13These stocks have traded back today while other stocks have continued to do well.
01:16I think that just speaks to the fact that there's uncertainty from a national level.
01:21Are data centers welcome in my neighborhood?
01:23And if so, what does that mean for me?
01:25Some large technology stocks rose on expectations that a slower expansion of AI infrastructure will favor them competitively,
01:33while smaller companies carrying out aspects of the AI infrastructure buildout fell on fears that a slowdown will strain their
01:39finances.
01:40A sharp decline in all prices, driven by bets that are shaved in power will hasten the end of the
01:46Iran war,
01:46boosted positive sentiment for the broad stock market.
01:50AI stocks were split.
01:51Shares of cash-rich AI heavyweights rose,
01:54while cheapmakers and data center operators fell after Democrats made gains in key data center states,
02:00including Texas and Georgia, where public opposition to the industry's rapid expansion has been growing.
02:05The move reflected expectations that a slowdown in expanding AI infrastructure could ease cash demands on tech companies,
02:13while pressuring operators and suppliers whose growth depends on a rapid build-out.
02:18AI heavyweights Amazon.com, Meta Platforms and Alphabet rose,
02:22while shares of data center operators Iran and HeartAid dropped sharply and applied digital and core scientific also tumbled.
02:30AMD dropped even after forecasting faster than expected 2027 growth,
02:35as its data center sales surged.
02:37The AI trade has come under pressure recently,
02:41as investors grow more concerned over big tech's soaring AI spending.
02:45The S&P 500 gained 119.70 points, or 1.58%,
02:51to end at 7,688.62 points,
02:54while the Nasdaq composite gained 364.504 points,
02:59or 1.437% to 25,736.513.
03:05The Dow Jones Industrial Average rose 1,569.40 points,
03:10or 3.03% to 53,356.12.
03:16All but two of the S&P 500 sector indexes rose,
03:19with consumer discretionary jumping and energy falling.
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