US midterm election results have triggered a mixed reaction on Wall Street. Following a clean Democratic sweep of Congress, the tech sector witnessed a sharp divide. Big Tech giants staged a stellar rally, while AI chipmakers and data centre operators took a major hit.
Experts believe a Democratic-led Congress will likely push for tighter regulations around artificial intelligence development and data centre construction. Investors have taken this as a positive cue. They feel stricter rules will finally force major tech companies to slow down their massive AI spending, which had recently raised deep market concerns.
Driven by this upbeat sentiment, shares of Amazon surged 8% to clock a three-month high. Apple and Microsoft both gained a solid 6%, with Apple hitting a fresh record peak. Alphabet advanced by 5.7%, and Meta jumped 3.5%. If this robust momentum holds, these five giants are on track to add over $750 billion in combined market value.
However, the mood remained subdued for hardware players. Fearing a slowdown in tech spending, major chipmakers witnessed a massive sell-off. SanDisk slumped heavily by 10%, while Seagate plunged 8.2%. Even AI superstar Nvidia slipped 2.5%, and CoreWeave crashed by 11%. Going forward, global markets will closely watch these new changing policies.