Tesla and SpaceX fall: Democratic victory boosts Wall Street

The defeat of US President Trump and his Republicans is causing an upswing on Wall Street. The solar industry in particular is flourishing. Defense stocks, data center operators and Elon Musk's companies remain unaffected by the euphoria.

The Democrats' election victory gave Wall Street a strong boost in the middle of the week. The Dow Jones index of standard stocks closed 3.0 percent higher at 53,356 points. The broader S&P 500 gained 1.6 percent to 7,688 points. The index of the technology exchange Nasdaq advanced by 1.4 percent to 25,736 positions. The election outcome provides clarity and reduces uncertainty, said Terry Sandven, chief investment strategist at U.S. Bank Wealth Management. This is often good for share prices.

However, technology stocks in connection with artificial intelligence (AI) were inconsistent. While the shares of the financially strong heavyweights Microsoft rose by 6.7 percent and Amazon by 6.1 percent, the shares of data center operators such as Hut 8 fell by 23 percent and IREN by eleven percent. The Philadelphia semiconductor index fell 3.1 percent to a six-month low. Traders pointed to the expectation that a slowdown in the expansion of AI infrastructure could relieve the financial burden on large corporations but slow the growth of suppliers and operators.

Musk's companies are giving up

Defense stocks such as Northrop Grumman and Lockheed Martin also came under pressure. Investors feared that President Donald Trump's defense budget would face major hurdles in Congress, now controlled by Democrats.

The shares of Tesla and SpaceX, led by Elon Musk, fell by 3.3 and 3.9 percent respectively. On the other hand, papers from solar and green energy companies were in demand. The Invesco Solar ETF climbed almost six percent. A falling oil price also supported the positive mood on the overall market.