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Tesla and Space X tank as Dems sweep 2026
Dow futures and the index surged nearly 1,000 points Wednesday after Democrats flipped the Senate and House, sparking a relief rally even as SpaceX and Tesla fell on Texas results and AI regulatory fears.
Relief rally takes hold: Futures turned green as the blue wave became clear; the Dow later jumped 975 points while S&P and Nasdaq also advanced.
Musk names lag: SpaceX and Tesla dropped in premarket trading after all Ai moratoriums on the ballots passed; CoreWeave and other AI infrastructure names also lagged.
Tuesday mixed close: The Dow fell 0.4% while the S&P rose 0.4% and Nasdaq gained 0.8% on chip strength ahead of results.
AI muddy: Markets liked the gridlock potential, but AI-linked shares saw muted gains on concerns over data-center rules and spending.
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AMD data center surge lifts AI based stocks
AMD shares jumped after third-quarter results showed data-center revenue nearly doubling and a strong fourth-quarter outlook that calmed worries about an AI spending slowdown.
Data center surge: Segment revenue rose 97% to roughly $8.5 billion as total quarterly revenue climbed 45% to about $13.4 billion.
Guidance strong: Management guided fourth-quarter revenue near $17 billion; 2027 growth is expected above 80%.
Demand quote: CEO Lisa Su said AI demand remains robust and the company is expanding capacity to meet it.
Market reaction: Shares advanced in after-hours and premarket trading, helping lift chip names even as broader AI infrastructure lagged on election news.
Democratic wins put AI data center buildout at risk
Gina Hinojosa’s victory in the Texas governor’s race and local ballot measures rejecting data centers raised the risk of moratoriums and tighter rules that could slow the AI infrastructure rollout.
Texas blow: Hinojosa defeated Greg Abbott after campaigning to halt new data-center construction, ending decades of Republican control.
Local bans: Voters in more than 30 communities across nine states approved limits or moratoriums on data-center projects.
Stocks react: AI data-center and infrastructure names dipped premarket on fears of regulatory hurdles in Texas, Ohio, and Georgia.
Cost context: One analysis put the all-in cost of a U.S. AI data center near $49 billion per gigawatt, up sharply from three years earlier.
Musk’s $474M Texas bet fails
SpaceX and Tesla shares fell early Wednesday after Elon Musk’s heavy Republican donations failed to stop Democratic wins in Texas’s Senate and governor races, putting his relocated empire under new scrutiny.
Stocks hit hard: Premarket declines hit both names as results showed Democrats taking Texas; one analysis framed the moves as major hurdles for AI build-out tied to Musk.
Donations miss: Musk spent heavily in Texas; the outcome left him with fewer political allies in the state where he moved operations from California.
Qualcomm deal: SpaceX signed a multiyear agreement to use Qualcomm’s Dragonwing hardware and software in base stations for its Starlink Mobile network, challenging the big carriers.
Analyst view: Morgan Stanley’s Adam Jonas now sees SpaceX generating positive free cash flow by 2031, four years earlier than previously expected, with Starship Flight 15 as a potential catalyst.
Super Micro revenue nearly quadruples to $20B on AI
Super Micro Computer shares jumped more than 7% after fiscal first-quarter results showed revenue nearly quadrupling to $20 billion on surging AI server demand, with guidance also topping estimates.
Blowout quarter: Profit reached $1.59 billion, or $1.75 a share, as AI infrastructure orders drove the top-line surge.
Demand scale: An executive said a single AI order is now large enough to exceed an entire quarter from a year earlier.
Stock reaction: Shares rose over 7% after hours and premarket; analysts called the print one of the best of the season.
Outlook strong: Full-year guidance came in above prior targets as the company expands capacity for hyperscaler and AI customers.
CVS plans 2028 split to break up pharmacy and insurance
CVS Health said it will break into two publicly traded companies by the first half of 2028, separating its drugstore operations from Aetna and the PBM while raising its full-year outlook after a beat.
Breakup timeline: The split unwinds the $78 billion 2018 Aetna deal; one company will hold the 9,000-plus drugstores, the other the insurance and care businesses.
Earnings beat: Adjusted EPS of $2.09 topped the $1.65 expected; the company raised guidance on strength in health-care benefits and pharmacy.
Market focus: Investors weighed the strategic shift against risks in a federal drug program that had created a cliffhanger on the prior call.
Strategic context: The move comes as pressure mounts on vertical integration in healthcare; Reuters and others traced the empire’s assembly before the planned dismantling.
Oil slips as Trump ties midterm loss to Iran war and prices
Crude prices eased Wednesday after President Trump linked Republican midterm losses to the Iran war and high pump prices, while physical markets flipped from bidding war to fire sale as Gulf barrels returned.
Trump connection: Markets assessed the political shift; Trump explicitly tied the defeat to high gasoline prices and the Iran conflict.
Physical market: Dated Brent and North Sea Forties, which had stayed parabolic above $140 earlier, saw Gulf flows via ship-to-ship transfers exceed demand.
Price levels: Brent traded near $104 and WTI near $97 amid choppy trading; Dubai benchmark slipped into contango for the first time since July.
Supply view: JPMorgan said rising Middle East exports and softer demand are pushing the global market back into surplus; Goldman lifted its year-end Brent call to $105.
Palantir hits first $2B quarter as commercial surpasses gov
Palantir CEO Alex Karp signaled he wants to dominate the entire market after the company posted its first $2 billion quarter, even as shares slid on slower contract momentum and commercial bookings concerns.
Milestone quarter: Revenue nearly doubled; American commercial customers generated more revenue than government clients for the first time after a 148% surge.
Karp stance: The CEO used the shareholder letter to declare traditional enterprise software sales “dead” and push for broader dominance.
Stock reaction: Shares fell despite the beat and raised targets from some analysts; ARK bought the dip while investors focused on contract growth.
Backlog signal: Slower contract momentum and new deal structures weighed on the narrative even as AI demand accelerated.