Free lectures" The blue wave tsunami swallowed up both houses! Wall Street's winners and losers reshuffled overnight

In the U.S. midterm election on November 3, 2026, the Democratic Party took back both the House of Representatives and the Senate, becoming the first opposition party to win both houses in a midterm election since 2006. The election results shattered market expectations that the Republican Party would retain at least one house, forcing Wall Street to reassess the new landscape of Congress under Donald Trump and the Democratic Party.

Although the Democratic Party has taken the lead in Congress, US President Trump still holds the veto power, and major bills may not be passed smoothly. (AFP file photo) Although the Democratic Party has gained control of Congress, Trump still holds veto power, and major bills may not be passed smoothly. However, the investigation, hearing and subpoena powers controlled by the Democratic Party will make companies face stricter congressional supervision.

Clean energy has become the biggest winner. Democrats support the energy transition and reduce the risk of reversal of renewable energy policies. Barclays believes that reduced political uncertainty will be beneficial to industrial investment. First Solar rose 9.2% before the market opened, Sunrun rose 9.4%, and Hanwha Solutions soared 19%. Relatively speaking, Trump’s policies to expand fossil fuel development and reduce incentives for green energy will be constrained.

The AI ​​industry is facing regulatory pressure. Democratic candidate Gina Hinojosa was elected governor of Texas, advocating a moratorium on the development of new data centers and the elimination of tax incentives. Texas accounts for about 27% of the planned data center capacity in the United States, and policy shifts may impact AI investment. Nasdaq 100 futures once fell by more than 2%, and CoreWeave fell by 7% in overnight trading. However, concerns about the return of AI investment are also factors that shock the market.

Democratic candidate Gina Hinojosa was elected governor of Texas, advocating a moratorium on the development of new data centers and the elimination of tax incentives. (AP file photo) Defense and fossil energy are also under pressure. Trump hopes to increase the annual defense budget to $1.5 trillion, but after the Democrats take control of Congress, it will be more difficult to expand military spending, and oil and gas development may also face stricter regulations. The pharmaceutical industry must face pressure to reduce the price of prescription drugs; in the financial industry, Trump's nomination of Federal Reserve (Fed) governors and some crypto-asset companies may also be subject to stricter scrutiny.

The blue wave has rewritten not only the political landscape, but also Wall Street's industrial pricing. Clean energy benefits, while AI data centers, national defense and fossil energy are under pressure, but Trump’s veto power still limits the Democratic Party’s policy space. What the market really needs to focus on is the shift in policy uncertainty from the White House to Congress and state governments. Being able to identify whether industrial risks have been overpriced will determine whether investors can seize opportunities in the changing landscape.

The AI ​​data center is under pressure. The picture shows Meta’s data center in Stanton Springs, Georgia, USA. (AP file photo) (Adjunct professor, Department of Finance, Tamkang University)