The Nasdaq‑100 rose 1.1% following Democratic control of Congress, while Bitcoin surged past $80k and AI‑related hardware stocks fell.
The U.S. midterm elections on Wednesday handed Democrats control of both chambers of Congress, prompting a modest rally in the Nasdaq‑100 but a stark divergence among technology stocks. Bitcoin rebounded sharply, trading just above $80,000, while AI‑related hardware firms slipped, highlighting investors’ uncertainty over forthcoming regulatory scrutiny.
According to Decrypt, the Nasdaq‑100 climbed 1.14% to 28,500, recovering from an overnight sell‑off that had pushed futures down more than 2%. The index’s gain was driven largely by software‑oriented companies, while hardware‑heavy AI names lagged. Analysts noted that a divided government could temper sweeping policy changes, yet the prospect of tougher AI oversight under Democratic leadership created a cautious tone.
Microsoft surged 6.0% to $552.32 and Alphabet rose 4.6% to $292.99, reflecting optimism for software and cloud services. In contrast, AI chipmaker Nvidia slipped 2.2% to $202.17, Tesla fell 3.6% to $384.10, and Intel dropped 5.8% to $57.04. Decrypt reported that Nvidia remains near a weak support zone around $200, suggesting the correction may be temporary but underscoring the sector’s sensitivity to policy risk.
Bitcoin rallied 4.1% to about $80,512, erasing an earlier election‑related sell‑off. The cryptocurrency’s bounce was cited as evidence that risk appetite has not vanished despite heightened political uncertainty. Decrypt highlighted that the digital asset’s movement mirrors broader market sentiment, where investors are selective about exposure to AI‑driven growth.
Market participants will monitor forthcoming Democratic policy proposals on AI data‑center regulation and infrastructure spending, as well as any legislative moves that could affect tech and crypto markets. The Nasdaq‑100’s ability to sustain its recovery above the 28,000 support level and Bitcoin’s capacity to stay above $80,000 will be key indicators of investor confidence in the coming weeks.
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