Dow closes up 1,575 points after Democratic sweep; data center stocks sink

How the day unfolded: At the 9:30 a.m. ET open the Dow was up 997.76 points, Reuters reported. By 11:48 a.m. ET it was up 1,514 points, CNBC reported, as U.S. crude fell more than 7% and Vice President JD Vance blamed the Iran war for Republican losses. The gains held into the 4 p.m. ET close, when the Dow finished up 1,575 points. AP reported Brent crude was down 8.7% at $94.62 a barrel with about an hour of trading left.

Winners: Microsoft closed up 7.12% at $558.08, a record, and Amazon up 7.02% at $268.28, according to Investing.com closing data. Reuters said Amazon, Meta and Alphabet rose on expectations that slower AI infrastructure growth will favor the biggest, cash-rich companies. Clean energy stocks also climbed: CNBC reported Nextpower and Canadian Solar each up more than 11% and First Solar up 8% in afternoon trading, and hospital and health insurance stocks such as HCA and Centene rose on bets that Democrats will slow health spending cuts.

Losers: Companies that build or power AI data centers fell hardest. In midday trading, Everus Construction fell 23.6%, Sterling Infrastructure 20.6%, Comfort Systems USA 16.4% and Quanta Services 12.8%, Benzinga reported; Modine also fell 23.3% after an earnings miss. Power producer Vistra closed down 13.71% at $120.45, per Investing.com. Reuters said data center operators Iren and Hut 8 dropped sharply, the Philadelphia semiconductor index hit a six-month low, and AMD fell even after forecasting faster-than-expected 2027 growth. Nvidia closed down 2.15% at $202.25, per Investing.com. Tesla and SpaceX were also among the laggards, Reuters said; Elon Musk spent nearly half a billion dollars backing Republican candidates. Defense stocks Northrop Grumman, RTX and Lockheed Martin fell as Trump's $1.5 trillion defense budget request faces a tougher Congress, and Chevron closed down 3.93% with oil.

What the evidence shows: A party losing Congress has not usually derailed stocks. The S&P 500 rose an average of 15.5% in the six months after the last 14 midterm elections dating to 1970, Edward Jones figures cited by CBS News show, and it rose through year-end in five of eight midterm cycles since 1930 when the president's party lost the House, according to Ned Davis Research, as reported by Fox Business. Those are averages and a mixed record, not a forecast, and one strong day does not set the trend.

What would change the story: Whether the rally holds in Thursday's trading, final calls in any remaining uncalled races, and concrete moves on a data center pause in Texas once Gov.-elect Gina Hinojosa takes office.

Updated Nov. 4 at 1:15 p.m. PT with closing figures. Index closes are Reuters' preliminary data and can be revised slightly. Closing moves for individual stocks are from Investing.com; data center builder moves are from Benzinga in midday trading and are labeled that way. Earlier versions of this story reported the 9:30 a.m. ET open (Dow up 997.76 points, per Reuters) and late-morning trading (Dow up 1,514 points at 11:48 a.m. ET, per CNBC). Photos are file images.