Tech, AI Stocks Split After Democratic Sweep: Microsoft Jumps, Tesla and Nvidia Tank

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%.

But 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.

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.