Democrats take Congress and Nvidia falls 2% as AI stocks split

Microsoft gained 6% to $552.32 on Wednesday after Democrats secured control of Congress in the midterm elections, while Nvidia fell 2.19% to $202.17 and Intel dropped 5.80% to $57.04 as investors separated software exposure from hardware in their read of what Democratic oversight means for AI infrastructure spending.

The Nasdaq-100 closed up 1.14% at 28,500, recovering from overnight futures losses that briefly exceeded 2%. Alphabet rose 4.63% to $292.99. Tesla shed 3.61% to $384.10. Trump Media & Technology Group fell 14.29% to $5.10, extending a year-to-date decline of roughly 55% that predates the election result.

The divergence tracks a specific investor concern: Democratic-controlled committees are expected to increase scrutiny of AI data center construction, particularly in Texas and Georgia, where large infrastructure projects have drawn political opposition. Software companies face less direct exposure to that scrutiny than chipmakers and hardware suppliers.

Bitcoin recovered to approximately $80,512, up 4.12%, after an election-related selloff overnight.