Shares of Trump Media, Tesla, SpaceX, and neocloud companies fell sharply in premarket trading Wednesday after Democrats won control of both chambers of Congress, raising concerns about regulatory headwinds for data center expansion and AI infrastructure.
Shares of Trump Media & Technology Group, Tesla, and a cluster of data center-focused companies fell sharply in premarket trading Wednesday after Democrats secured control of both chambers of Congress in Tuesday's midterm elections, raising expectations of heightened regulatory and political headwinds for several technology sectors.
Trump Media & Technology Group — the parent company of Truth Social, in which President Donald Trump holds a 41% stake — dropped 11% in premarket trading, reflecting investor concern that a Democrat-led Congress would impose a more effective check on the administration's policy agenda.
Shares of Tesla fell nearly 6%, while SpaceX declined more than 7%. Both companies are controlled by Elon Musk. The moves came as several newly elected Democratic candidates have taken critical positions on the rapid expansion of data center infrastructure tied to artificial intelligence demand. SpaceX operates an AI supercomputing facility across Tennessee and Mississippi, and Tesla maintains a comparable facility in Texas.
So-called neocloud stocks — companies that provide AI-oriented cloud computing infrastructure — also moved lower. CoreWeave fell 7%, Iren tumbled 6%, and Nebius slipped approximately 5%. Analysts and market observers pointed to Democratic wins in Texas and the rejection of data center ballot measures across the country as the catalyst, signaling that regulatory and local opposition to data center construction could intensify.
Not all premarket movers reflected the political backdrop. Novo Nordisk gained more than 6% after the global healthcare company reported quarterly earnings of 5.79 Danish kroner — roughly 63 cents per share — against Wall Street expectations of 5.10 kroner, or approximately 55 cents. The company also raised its fiscal 2026 outlook, citing anticipated growth in GLP-1 product sales.
CVS Health slid more than 2% after the company announced plans to split into two separate publicly traded companies by the first half of 2028. The move would effectively unwind CVS's $78 billion acquisition of Aetna and separate its retail pharmacy operations from its insurance business.
Duolingo surged 18% after reporting third-quarter revenue of $309 million, topping an LSEG consensus estimate of $303 million. Monthly active users reached 153 million for the quarter, exceeding a forecast of 149 million.
Employee benefits consultancy Alight jumped 22% after raising its full-year 2026 guidance. The company now projects revenue in the range of $2.115 billion to $2.125 billion, above a FactSet consensus of $2.09 billion, and adjusted EBITDA of $410 million to $420 million, also ahead of Street estimates of $404.4 million.
Super Micro Computer gained 2% after earnings per share and revenue beat Wall Street estimates. For fiscal year 2027, the company forecast net sales between $72 billion and $82 billion, above the LSEG consensus of $69.17 billion.
Arista Networks rose 4% on stronger-than-expected fourth-quarter guidance. The cloud networking company projected earnings of $1.26 to $1.30 per share on revenue of $3.9 billion to $4.0 billion, compared with analyst expectations of $1.15 per share and $3.60 billion.
Fintech company Block rallied 9% after posting third-quarter adjusted earnings of $1.13 per share on revenue of $6.72 billion, beating LSEG consensus estimates of $1.03 per share and $6.59 billion, respectively. The company also raised its full-year guidance.
Skyworks Solutions fell approximately 11% after issuing guidance for the fiscal first quarter that fell short of analyst expectations. The company projects adjusted earnings of about $1.25 per share and revenue of $1.80 billion to $1.90 billion, against LSEG consensus estimates of $1.50 per share and $1.99 billion. Skyworks completed its combination with Qorvo in early October, making the current quarter the first combined reporting period for the two entities.
The premarket session underscores how the political shift in Congress is being priced into technology and infrastructure stocks well before any new legislation is introduced — a dynamic that is likely to persist as investors assess which sectors face the greatest exposure to a divided government.
TechEchelon Staff bylines are produced collectively by the newsroom for short, breaking, and wire-style coverage. Longer-form reporting is published under the responsible reporter's name.
More from the Staff →AMD beat Wall Street estimates in the third quarter with revenue of $13.38 billion, up 45% year over year, as its data center segment nearly doubled and now represents 64% of total revenue. CEO Lisa Su projected server revenue would double again in 2027.
Apple CEO John Ternus warned that memory costs will continue rising beyond the December quarter, after the company issued a gross margin forecast of 45%–46% that missed Wall Street's 46.3% estimate, sending shares down nearly 4% in premarket trading.
Intel's stock fell 45% in October — its steepest monthly decline on record — after a revenue warning tied to a weakening PC market, raising fresh doubts about the viability of the company's foundry ambitions.
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