Technology stocks delivered a mixed performance Wednesday after Democrats swept the U.S. midterm elections, with investors weighing the prospect of tougher artificial intelligence regulation against expectations that a divided government could limit major policy changes.
The Nasdaq-100 climbed 1.14% to 28,500, recovering from an overnight selloff that briefly pushed index futures down more than 2%.
But beneath the broader market rebound, individual technology stocks told sharply different stories.
Microsoft jumped 6.01% to $552.32, while Google parent Alphabet rose 4.63% to $292.99, according to intraday charts reviewed Wednesday.
While software stocks jumped, hardware stocks corrected to the downside. AI chipmaking giant Nvidia fell 2.19% to $202.17, Tesla dropped 3.61% to $384.10, and Intel lost 5.80% to $57.04.
That said, none has yet shown a heavy bearish trend. Even Nvidia, which is going through the most obvious price correction, remains bullish on the longer trend as the prices test a weak support near the $200 price zone.
Bitcoin also recovered strongly, trading around $80,512, up 4.12% in the day, after an initial election-related selloff.
The conflicting moves reflect the uncertainty over what Democratic control of Congress will mean for technology companies that have benefited from the Donald Trump administration's approach to deregulation.
According to Reuters, investors are particularly concerned about greater scrutiny of AI data centers—the hardware camps of the AI industry—following Democratic victories in states such as Texas and Georgia, where large infrastructure projects have become politically contentious.
The AI sector was already facing questions over enormous infrastructure spending and whether those investments would generate adequate returns.
Trump Media's crash began well before election night
One of Wednesday's biggest losers was Trump Media & Technology Group, the company behind Truth Social.
Shares plunged 14.29% to $5.10, extending a decline that had been underway long before Democrats secured control of Congress.
The stock had already lost approximately 55% of its value year-to-date before Tuesday's vote.
Technical indicators show traders had been bearish on the stock for months. Trump Media has been in a technical pattern that traders refer to as a “death cross” since March 2025, and has lost nearly 90% of its market cap since its 2024 cap. A death cross happens when the average price of the last 200 days becomes greater than that of the last 50 days, suggesting the asset is losing value way too quickly.
The Nasdaq-100's recovery is encouraging for technology bulls, but the index remains well below its October highs above 31,000. The 28,000 area represents an immediate support zone, while a move back above 29,000 would strengthen the short-term recovery.
Bitcoin's recovery above $80,000 offers another indication that risk appetite has not disappeared entirely.
Still, Wednesday's split between technology winners and losers suggests investors are becoming increasingly selective about their exposure to the AI boom—and the political risks surrounding it.
