From Decrypt · By Jose Antonio Lanz
In brief
The Nasdaq-100 gained 1.14% after Democrats won control of both chambers of Congress, but major AI and technology stocks moved in opposite directions.
Bitcoin rebounded above $80,000, while Nvidia, Tesla, Intel, and Meta declined.
Trump Media plunged more than 14%, extending a bearish trend that had been in place for weeks before the election.
Technology stocks delivered a mixed performance Wednesday after Democrats swept the U.S. midterm elections, with investors weighing the prospect of tougher artificial intelligence regulation against expectations that a divided government could limit major policy changes.
The Nasdaq-100 climbed 1.14% to 28,500, recovering from an overnight selloff that briefly pushed index futures down more than 2%.
PredictEconomyNVDA Lows in November
17627%YesNo18443%YesNo19263%YesNo20088%YesNo160-%YesNo+2 more outcomes+1 more outcomesNEW$0.00 volumeCloses: Dec 1, 2026, 04:59 UTCCloses: Dec 1, 2026, 04:59 UTCBut beneath the broader market rebound, individual technology stocks told sharply different stories.
Microsoft jumped 6.01% to $552.32, while Google parent Alphabet rose 4.63% to $292.99, according to intraday charts reviewed Wednesday.
Microsoft stock price data. Image: TradingView
While software stocks jumped, hardware stocks corrected to the downside. AI chipmaking giant Nvidia fell 2.19% to $202.17, Tesla dropped 3.61% to $384.10, and Intel lost 5.80% to $57.04.
That said, none has yet shown a heavy bearish trend. Even Nvidia, which is going through the most obvious price correction, remains bullish on the longer trend as the prices test a weak support near the $200 price zone.
Nvidia stock price data. Image: TradingView
Bitcoin also recovered strongly, trading around $80,512, up 4.12% in the day, after an initial election-related selloff.
The conflicting moves reflect the uncertainty over what Democratic control of Congress will mean for technology companies that have benefited from the Donald Trump administration's approach to deregulation.
PredictEconomyTSLA Lows in November
31511%YesNo33017%YesNo34532%YesNo36052%YesNo37575%YesNo+5 more outcomes+4 more outcomesNEW$0.00 volumeCloses: Dec 1, 2026, 04:59 UTCCloses: Dec 1, 2026, 04:59 UTCAccording to Reuters, investors are particularly concerned about greater scrutiny of AI data centers—the hardware camps of the AI industry—following Democratic victories in states such as Texas and Georgia, where large infrastructure projects have become politically contentious.
The AI sector was already facing questions over enormous infrastructure spending and whether those investments would generate adequate returns.