From high-flying AI stocks to tariff-hit alcohol companies, the midterms shook up Wall Street

Democrats’ sweeping midterm victory shook Wall Street, with markets repricing several major themes. Shares tied to the AI boom swung on concerns that a Democratic Congress could slow further data-center development, particularly affecting companies tied to the buildout. Tech hardware and services names such as Nvidia and Lam Research fell amid worries about incremental construction, while hyperscalers like Amazon fared better. Defense stocks dropped 4% to 12% after expectations grew for an end to the U.S.-Iran war, though shortages could still drive replenishment demand. Oil and refining firms slid on similar oil-price pressure; Exxon Mobil and Phillips 66 still showed solid year-to-date gains. SpaceX and Tesla also fell after concerns of investigations linked to Elon Musk.