Will tighter AI regulation slow Big Tech spending? What the US midterm results mean for tech stocks – Explained

A Democratic sweep of both chambers of Congress in the midterm elections left Wall Street divided in Wednesday’s trade. While AI chipmakers, memory companies and data centre operators fell, hyperscalers surged sharply.

Shares of Amazon surged 8% to a three-month high, while Apple and Microsoft advanced 6% each. Alphabet gained 5.7%, while Meta Platforms climbed 3.5%, powering a rally on Wall Street after days of selling fuelled by concerns over the soaring costs of the AI boom.