US stocks today: Dow Jones soars 1,000 points at open as Democrats win Congress; data center stocks slide

Listen to this article in summarized format

Reuters

Dow Jones Industrial Average rose 1,203.07 points, or 2.30%, to 52,989.79, the S&P 500 gained 129.88 points, or 1.72%, to 7,698.80 and the Nasdaq Composite gained 540.38 points, or 2.13%, to 25,912.39.

For live updates on US Markets, click here

Democrats scored major victories in traditionally Republican strongholds, marking a significant setback for President Donald Trump. Trump acknowledged that the US-Israeli war on Iran had contributed to his party's electoral defeat.

The election outcome eased some uncertainty, helping lift heavyweight technology stocks. Amazon.com surged 7.1%, while Alphabet added 3.4% and Meta Platforms rose 1.6%, Reuters reported.

"The general view that this is a clearing event, so the uncertainty related to the elections is now behind us," said Scott Chornert, head of US equity strategy at Citi Research.

Data centre stocks face fresh pressure

While broader technology stocks advanced, companies exposed to the AI infrastructure boom struggled as investors assessed the potential implications of Democratic gains in key data centre markets, including Texas and Georgia.

Shares of IREN, Hut 8, Applied Digital and Core Scientific fell between 1.2% and 13%, reflecting concerns that stronger political opposition to rapid data centre expansion could slow the industry's growth.

"It's pretty clear that the AI trade will face some headwinds there.... If you push out the pace or change the pace of the data center build out, you begin to change the fundamental trajectory for many of those suppliers," Chornert said.

The pressure comes as investors are already questioning whether Big Tech's massive AI investments will generate adequate returns. The Nasdaq-100 entered correction territory on Monday, according to Reuters.

AMD gains, defence stocks retreat

Chipmaker AMD rose 4.8% after forecasting faster-than-expected growth in 2027, supported by strong demand for its data centre products.

Elsewhere, defence stocks including Northrop Grumman, RTX and Lockheed Martin fell sharply as Trump's proposed $1.5 trillion defence budget could face greater resistance in the new Congress.

Clean energy stocks moved higher on expectations that Democratic control could help preserve federal support for the sector. The Invesco Solar ETF jumped 8.3%.

McDonald's gained 3.9% after beating quarterly profit estimates, while Block surged 15% after raising its full-year gross profit outlook.