US stocks opened higher on Wednesday, 4 November, after Democrats secured control of both chambers of Congress in the midterm elections, with investors betting that a divided Washington could limit the scope for sharp policy shifts.
The Dow Jones Industrial Average rose 997.76 points, or 1.9 per cent, at the open to 52,784.48. The S&P 500 rose 86.51 points, or 1.1 per cent, to 7,655.43, and the Nasdaq Composite rose 271.36 points, or 1.1 per cent, to 25,643.36, according to Reuters reporting carried by The Business Times. The same opening levels were also reported in The Economic Times live market coverage.
Why investors welcomed a divided Washington
The market logic reported on the day was straightforward: with Democrats in control of Congress and Donald Trump in the White House, sweeping new policy changes become harder to pass. Allianz Global Investors’ chief investment officer for public markets, Michael Krautzberger, and senior economist Liam Wash were quoted as saying investors could conclude that Washington remains “structurally constrained, limiting the prospects for dramatic shifts in the economic outlook”.
That reading is an investor interpretation, not a guaranteed outcome. A divided government can still produce sharp disputes over spending, tariffs and regulation, and opening levels are not closing levels — markets can move substantially during the session.
Data-centre stocks slide on AI-regulation worries
While the broad market rose, data-centre-related stocks came under pressure as concerns over tighter artificial intelligence regulation weighed. Reuters reported that Applied Digital fell 4.1 per cent and CoreWeave fell 5.3 per cent, while Cipher Digital slid 14.3 per cent.
Goldman Sachs economists were cited in a note saying Democratic wins at state and local level were likely to lead to short-term data-centre moratoria, potentially affecting about 45 per cent of planned US data-centre capacity expansion. The AI trade was already under scrutiny after Democrats made gains in key data-centre states including Texas and Georgia, where public opposition to the industry’s rapid expansion has been growing.
Utilities and equipment suppliers exposed to the data-centre boom also fell. GE Vernova dropped 5.8 per cent, while Constellation Energy and Vistra — among the power companies most exposed to data-centre projects in Texas — slid 5 per cent and 9 per cent respectively.
What to watch next
Traders will now watch whether the opening gains hold into the close, how Democratic congressional leaders frame their legislative priorities, and whether any concrete proposals on AI regulation or data-centre permitting emerge. The Nasdaq 100 had confirmed a technical correction on Monday, a reminder that the AI trade was already under pressure before election night.
Frequently asked questions
How much did the Dow rise at the open? The Dow rose 997.76 points, or 1.9 per cent, to 52,784.48 at the open on 4 November, according to Reuters.
Why did data-centre stocks fall while the market rose? Investors worried that Democratic gains could bring tighter AI regulation and short-term local moratoria on data-centre expansion, even as divided government was seen as limiting broader policy shifts.
Does a higher open guarantee a higher close? No. Opening levels capture only the start of trading and can reverse during the session.
Sources
- Reuters via The Business Times, “Wall Street opens higher as Democrats win Congress; data centre stocks slide”, 4 November 2026 — https://www.businesstimes.com.sg/companies-markets/capital-markets-currencies/wall-street-opens-higher-democrats-win-congress-data-centre-stocks-slide
- The Economic Times, US stock market live updates, 4 November 2026 — https://economictimes.indiatimes.com/markets/us-stocks/wall-street-guide/stock-market-live-updates-dow-jones-nasdaq-sp-500-amd-nvidia-tesla-amazon-meta-ai-stocks-us-midterm-election-results-democrat-win-treasury-yield-news-4th-november-2026/liveblog/135540466.cms
- CNN, “Dow jumps by 1,000 points as Democrats take control of Congress”, 4 November 2026 — https://www.cnn.com/2026/11/04/investing/us-markets-midterm-elections?cid=external-feeds_iluminar_meta
Related coverage: Global Stocks Slump and Dollar Slides as Democrats’ Midterm Sweep Rattles AI Bets, Democrats Projected to Win Senate Control in Midterm Elections, and Nikkei 225 Falls 4 Per Cent in Early Trading After US Midterm Results.
