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

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

2026-11-07 22:32 Last Updated At：22:40

NEW YORK (AP) — The overwhelming victory by the Democrats in the midterm elections shook up Wall Street this week.

The biggest tremors were felt in shares of companies tied to the boom in artificial intelligence on concerns that a Democratic Congress will put the brakes on further development of data centers.

Defense and oil companies fell on expectations Democrats would push for an end to the U.S.-Iran war, which would likely lower energy prices.

Meanwhile, hospital shares rose on the possibility that funding for several government programs could be restored or boosted, while liquor companies and others buffeted by tariffs rose on hopes for relief.

Here’s a look at how certain stocks and industries reacted to the result of the midterms.

The frantic construction of data centers to power the AI boom has meant big profits for a wide array of companies — chip makers, power providers, cooling system producers, cloud computing companies and more. Investors hungry for a piece of those profits dove in, pushing some stocks up by double or more. But concerns grew that AI stocks got too pricey. And then the Democrats swept the midterms to take control of Congress.

Nvidia, Lam Research and others tied to the AI boom swung wildly this week on worries that Democratic victories in statehouses across the country could mean a slowdown in further construction, particularly in Texas. Hyperscalers, or those funding the buildout, like Amazon, fared better.

Defense companies have been volatile throughout the year, rising and falling with the shifts in the U.S. war with Iran. Hopes for an end to the war increased following the Democrats’ sweep in the midterms. An end to the war could mean slimmer business for several big defense companies, though the war has also depleted stockpiles of weapons, which could result in demand for resupplies by the U.S. government.

Northrop Grumman, Lockheed Martin, RTX and General Dynamics fell between 4% and 12% after Tuesday.

Oil exploration and refining companies have been among the biggest beneficiaries of the U.S. war with Iran, which has stifled global supplies since February and raised the price of crude oil and gasoline. Several big energy companies lost ground following the midterms because an end to the war would lower oil prices and reduce the companies’ profits.

Companies such as Exxon Mobil and Phillips 66 are still showing solid year-to-date gains.

Elon Musk spent more than $445 million in an attempt to help Republicans maintain control of Congress. Not only was his return on investment not very good, but shares of his two publicly traded companies took a drubbing on concerns a Democratic Congress will investigate Musk’s work as Trump’s cost-cutting chief in 2025. SpaceX, which houses Musk’s xAI business, and Tesla, with plans for a fleet of mostly autonomous vehicles, fell 5% and 10.1%, respectively, after the midterms.

The president’s social media company, Trump Media & Technology, lost 33% of its market value in the three days after the election. Trump’s stake in the company was worth nearly $5 billion in March 2025. Now, it’s worth less than $600 million. The company is hoping to improve its fortunes by merging with the nuclear fusion company TAE Technologies. Completion of the deal is pending.

Companies focusing on wind, solar and other forms of renewable energy could see sunnier days ahead with a more industry-friendly Congress. Democrats will have overwhelming influence on funding when they take control of Congress in January, raising hopes for a wide range of green energy companies.

Those companies involved in powering the data centers at the hub of the AI buildout didn't fare as well, however, after a number of data center skeptics got elected to Congress or governorships.

Hospitals gained ground over hopes that funding for several government programs could be restored or boosted, including Medicaid and subsidies for the Affordable Care Act. Medicaid spending was reduced under Trump. Enhanced tax credits for the ACA were allowed to expire without being renewed, resulting in a decline in enrollment for insurance coverage nationally. More funding for those programs would result in an eventual boost to healthcare providers, including hospitals.

HCA Healthcare rose 6.9%, Tenet Healthcare gained 6.2% and Universal Health Services added 10.4% after Tuesday.

The housing sector, including builders, continues to face pressure from historically high home prices and mortgage rates. The shift in power in Congress could mean a greater focus on policies that address affordability, which was a key theme for Democrats. Cutting tariffs and lowering energy costs could lower supply chain costs. That could also help home improvement retailers by relieving pressure on consumers.

Mortgage rates, though, are a trickier issue for the industry. The Federal Reserve is expected to raise its benchmark interest rate again in an effort to cool inflation. That likely means that interest rates on many types of loans, including mortgages, will remain high.

D.R. Horton gained 4.9%, PulteGroup rose 4.4% and Home Depot added 2.9%.

Beer, wine and liquor companies could see relief from tariffs that have hurt sales both in the U.S. and globally with Democrats taking control of Congress. The hope is that they will take action to end the global tariff conflict that has raised prices. S&P 500 members Constellation Brands, which has U.S. import rights for Corona and Modelo beers, and Brown-Forman, which makes Jack Daniel’s and other liquors, both had gains.

Makers and sellers of everyday consumer staples gained ground as investors moved out of riskier sectors. They were also helped by hopes that a shift in control of Congress could mean policies that help cool inflation. Eliminating or reducing tariffs could help lower costs for businesses. Ending the U.S. war with Iran could boost global oil supplies, which would lower oil prices and costs for shipping on everything from food to clothing.

After the election, Costco Wholesale added 3.4%, Procter & Gamble rose 2.1% and Dollar General rose 2.5%.

With an ode to mate, pope urges faithful in Uruguay to build bridges of fraternity and faith

PAYSANDÚ, Uruguay (AP) — Pope Leo XIV urged an estimated 40,000 people in Uruguay on Saturday to build bridges of fraternity and faith, as he used his first Mass in South America to deliver an ode to the region's beloved mate tea and raise the profile of the Catholic Church in its most secular country.

The crowd erupted in the stadium chant of “Olé, olé, olé, olé, Pope, Pope!” when Leo's plane landed in Paysandú, in western Uruguay on the border with Argentina. They cheered again, blew horns and waved yellow handkerchiefs when he arrived in his open-sided popemobile at the Mass site in the Parque París Londres, a sprawling green space on the southern edge of Paysandú.

More than 30,000 people — many from Uruguay but also from neighboring Argentina and Brazil — had registered in advance to attend the service, around 375 kilometers (230 miles) from the capital, Montevideo. The Vatican said Saturday another 10,000 had shown up beyond that, despite the morning rain and blustery, gray skies.

Because of its accessible location on the Uruguay River, the city was chosen to host Leo’s first Mass at the start of his three-nation South American tour that was in doubt after he underwent lung cancer surgery on Oct. 13.

Crowds of faithful in rain ponchos, many in the Vatican’s yellow, began streaming into the site when the gates opened at 5:30 a.m. as a band played popular Spanish hymns. Some in the crowd said they were deeply moved that Leo pressed on with his ambitious 12-day tour despite his recent cancer diagnosis.

“He’s the representative of Christ but he’s human. And we weren’t sure if he could make it, but he pushed through for us,” said Soledad Sánchez, 73, who had driven to Paysandú from northern Uruguay, her eyes filling with tears. “He made it here to give us a message of peace because he knows our world needs it right now.”

Leo, who arrived in Uruguay on Friday, is seeking to urge the people in South America’s most secular country, with a population of 3.5 million, to turn to the Catholic faith for strength in confronting today’s problems and challenges.

In his homily, Leo urged the faithful to build bridges of faith, fraternity and encounter, recalling the nearby bridge over the Uruguay River that unites Uruguay and Argentina and over which many pilgrims traveled to attend the Mass.

He also pointed to the ritual of drinking mate, the ubiquitous bitter herbal tea that Uruguayans and their neighbors carry everywhere, as a poignant symbol of unity and encounter that he suggested should be applied to spreading the faith today.

Mate, a cherished national symbol in Paraguay, Argentina and Uruguay, is above all a sharing ritual. The leaves are steeped in a hollowed gourd and sipped through a metal straw called a bombilla, and the gourd passes from hand to hand among friends, family and sometimes strangers, refilled for hours.

Everyone drinks from the same straw, and Uruguayans drink more mate per person than anyone else in the world, roughly 9 kilograms (about 20 pounds) of the dried leaf a year, according to industry estimates.

In his comments, Leo delivered an ode to mate. “It teaches us to share and to be together, strengthening the bonds that unite us as brothers and sisters,” he said, drawing a round of applause and a smile from the pope.

Symbols like mate give identity and a sense of belonging that point to the future, he said.

“Faith, too, has been part of the life of the Uruguayan people since their earliest days, and it must be passed on to future generations with creative courage,” he said.

Leo was to press the message of the church's commitment to helping Uruguayans later Saturday by touring a Montevideo neighborhood beset by drug trafficking and gang violence, where the church is working with municipal authorities to build housing and provide rehab programs for addicts.

His final event, too, was likely to drive home the call to reject religious indifference and embrace the faith: a prayer vigil in Montevideo's Centenary Stadium.

Located in western Uruguay and just across a bridge from the eastern Argentine city of Colón, Paysandú was easier to reach for many Argentines than any of the stops on Leo’s part of the tour in Argentina, his next stop after Uruguay.

In Argentina, Leo will visit Buenos Aires, Luján and Córdoba before heading to Peru, his second homeland and the final destination of his tour.

“Argentina is a much more religious country than Uruguay, and there’s this desire to be here to witness something historic,” said Luciana Lobato, 20, an Argentine tour agent who organized buses of 180 pilgrims from across the border.

Some young Catholics involved in local church groups hoped the sight of a pope drawing crowds would challenge Uruguay’s image as a country indifferent to religion.

“The reality I see in my town is that there are tons of young people who are really interested in religion, who are trying to find meaning and community in difficult moments,” said Teresa Sabellini, 18, from Paysandú.

“And now look around here. This place is full of people,” she added.

Still, Paysandú itself greeted the pope quietly, as though it were an ordinary weekend, with scant decorations and only a few homes seen flying Vatican flags.

Saturday’s Mass was dedicated to Blessed Jacinto Vera, a 19th-century priest who became Uruguay’s first bishop. Leo praised him on Friday as a pastor who traveled the country’s roads to help the poor, saying that people who met him “found something of Christ’s goodness” even before he preached.

Some younger attendees on Saturday said Leo’s humane tone and emphasis on care for the vulnerable resonated beyond the faithful in their secular country as people grapple with a turbulent world.

“I wouldn’t call myself religious, but I like this pope. He has a really good message for humanity,” said Santiago Biglieri, 18, a Colombian who lives in Uruguay. “Even for the nonbelievers, there’s something to take from his ideas.”

Winfield reported from Montevideo, Uruguay.

Associated Press religion coverage receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content.

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

News

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

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