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Capitalist Insider: Bank of England hikes rates as Iran war keeps inflation burning
🚨BREAKING🚨 Nasdaq crashes into correction as tech dump erases the ENTIRE midterm rally
Voters crush data centers: 40 of 41 ballot measures rejected
Trump tells CNBC he can work with Democrats on far more issues
Democrats map affordability and oversight push after midterm sweep
🚨BREAKING🚨
Nasdaq crashes into correction as tech dump erases the ENTIRE midterm rally
The Nasdaq crashed 3.9% into correction territory Thursday while the Dow dropped more than 1,000 points, wiping out most of Wednesday’s post-election gains as traders dumped AI and chip stocks.
Index moves locked: The Nasdaq Composite lost 1,168.52 points to 24,567.99; the S&P 500 fell 2.8% and the Dow slid 1,153 points, or 2.2%.
Tech and chips hit: Broadcom and Nvidia each dropped about 6%, Qualcomm fell 11% on a weak outlook, and the iShares Semiconductor ETF sank 11% in its worst day since March 2020.
Neoclouds and Musk names: CoreWeave lost 9%, Nebius 13% and Iren 14%; Tesla fell 9% and SpaceX 7%.
Midterm driver: The sell-off followed Democratic wins that raised fears of slower data-center buildouts and a cooler AI capex cycle after the prior session’s relief rally.
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Capitalist Insider: Bank of England hikes rates as Iran war keeps inflation burning
Hello Capitalist Insiders!
Oil crashes below $90 as Vance blames Iran war for GOP rout
Crude tumbled more than 8% Wednesday after Vice President JD Vance pinned Republican midterm losses on the Iran conflict, lifting hopes for a faster diplomatic exit and stripping the war-risk premium.
Vance pins the loss: He posted that “the reason we lost is the war” and that “the president himself said so last night.”
WTI and Brent settle: WTI fell 8.3% to $88.12 while Brent dropped 8.7% to $94.62, a two-month low.
Deal incentive rises: Lipow Oil’s Andy Lipow said the results lead the market to conclude Trump might now be inclined to make a deal.
UBS sees a floor: Dominic Ellis noted fundamentals still provide support with another $10–$15 of premium near $95 even as Brent tracks its worst week since COVID.
Voters crush data centers: 40 of 41 ballot measures rejected
Voters backed restrictions or bans on data centers in 40 of 41 local measures across 10 states, sending a clear signal against rapid AI infrastructure growth.
Texas flips governor: Gina Hinojosa unseated Greg Abbott on a platform that includes an immediate moratorium on new data centers.
Goldman capacity hit: The bank sees moratoria potentially freezing 45% of planned U.S. capacity, with Texas projects especially exposed.
Opposition surge: Share of Americans who “strongly oppose” a nearby data center rose from 24% to 61% in under a year.
Energy stocks punished: Constellation and other power providers to giant facilities sold off as the blue wave took hold.
Chip stocks plunge as AI purge hits day two after midterms
Qualcomm tumbled roughly 10% on a weak outlook and the broader semiconductor complex stayed under pressure as the post-election rotation out of AI accelerated.
Semis valuation gap: Forward multiples on semiconductors sit at 13.8x, a 25% discount to the S&P and the widest since December 2018.
Qualcomm guide weak: Soft chip-design margins and a cautious outlook weighed on the name and peers including Arm and Micron.
Rotation continues: Staples, financials and healthcare held up while AI-linked hardware and neocloud names stayed soft.
Trump tells CNBC he can work with Democrats on far more issues
President Trump struck a conciliatory note in a post-election call with CNBC, saying he can work with the new Democratic Congress on “many more things than people understand.”
Conciliatory tone: He raised areas of potential overlap including trade views he said align with Bernie Sanders and financial items that could be mutually beneficial.
Tariffs stay: He indicated he would not want to remove tariffs but left room for other deals.
Markets digest: Futures cooled Thursday as investors weighed the new divided-government setup against ongoing AI caution.
Democrats map affordability and oversight push after midterm sweep
Congressional Democrats plan a flurry of affordability and anti-corruption bills when they take power in January, setting up early clashes with the White House.
Jeffries on impeachment: House Minority Leader Hakeem Jeffries said no Democrat has raised impeaching Trump with him and the focus is affordability and accountability.
Agenda priorities: CNBC reported plans centered on household costs, health insurance, taxes and student loans.
Oversight tone: Expected Oversight chair Robert Garcia posted “Lawyer up” shortly after the House flipped.
No veto-proof majority: Activists push investigations, but the lack of a supermajority limits what can pass over a presidential veto.
Big Oil fears blue-wave fallout despite strong price year
Energy executives see a demand-driven decade ahead from AI and population growth, yet the Democratic sweep raises fresh questions about permitting and the Iran-war premium.
Leaders’ outlook: BP and Baker Hughes chiefs described a demand decade of investment tempered by geopolitics and price uncertainty.
Price collapse: Wednesday’s oil drop of more than 8% underscored how quickly the blue-wave outcome repriced the conflict.
Permitting risk: Analysts flagged that a Democratic Congress could slow or condition new energy infrastructure.
Stocks under pressure: Energy names lagged the broader relief rally as traders weighed the policy shift.
Confidence on our economic future based on the morons who got elected. Happy yet ??