The “Blunami” is washing over markets.

US stocks soared on Wednesday as investors digested the stunning streak of Democrat victories in the midterm elections. Major indexes initially dropped overnight before reversing to surge on Wednesday, with the Dow gaining nearly 1,600 points in the session.

It marks the index’s best day since April 2025, when President Donald Trump announced a pause on tariffs and kicked off a historic stock rally.

Here’s where US indexes stood at the 4:00 p.m. ET closing bell on Wednesday:

The day’s 1% pop in the Nasdaq 100 may be a signal that investors don’t see the AI trade suffering a major setback as Democrats get ready to wield power in Congress next year. Without a veto-proof majority to reshape the rules around things like data-centers, it’s likely that debates around the AI buildout will continue to take place at the state and local level. Still, data center operators and neocloud companies like CoreWeave plunged on the result.

But for the broader market, the outlook is rosier.

Since 1970, the S&P 500 has gained an average 14% in the six months following a midterm election, compared to the average 6% gain in non-midterm years, according to an analysis from BlackRock.

“The midterm elections come at the perfect time to rescue the stock market from its bout of AI-driven volatility. Stocks have historically tended to rally after the midterms regardless of the outcome,” Justin Buell, the chief investment officer of Continuity Group, wrote in a note.

“There’s that sigh of relief that comes with knowing what the results are and being able to move forward and contemplating a world where some of the more drastic of the rules and regulations that have been put in place over the last couple of years may be moderated,” Art Hogan, the chief market strategist at B. Riley Wealth Management, told Business Insider.

Here’s the rundown of the market’s biggest losers and winners:

The losers

1. The data-center trade

Investors see the Democratic sweep as a possible obstacle to the continued AI infrastructure buildout. Democratic lawmakers could push for more regulation and oversight on data center construction, slowing down the AI boom at a time when infrastructure is still the major focus among the market’s hyperscalers.

In Texas, a state that’s expected to host around 30% of future data center capacity expected through 2030, Democrat Gina Hinojosa’s victory in the race for governor is being viewed as bearish for infrastructure developers and neocloud companies in the state.

SpaceX, a major AI spender, dropped as much as 7% after the election results. Tesla, which is also headquartered in the Lone Star state, dropped as much as 4%.

Neoclouds were among the biggest losers, with the Roundhill Neocloud ETF sliding 8%. CoreWeave fell 9%. IREN Limited and Nebius dropped 11% and 7%, respectively.

AI infrastructure, chips, data center stocks are among the market’s “most vulnerable” areas with a Democratic sweep, Ioan Jauregui, an analyst at ActivTrades, wrote in a note.

Here were some of the sector’s most notable moves:

“Hinojosa is a known anti-data center politician and negative on the AI buildout which makes worries around the future of the datacenter buildout in Texas a real issue for tech investors,” Dan Ives, a longtime tech analyst and a senior managing director at Yorkville Ives, wrote on Wednesday.

Still, others say the bull market can keep pushing on, regardless of possible hiccups in the AI infrastructure trade.

“While a blue wave could spark volatility in certain sectors, such as tech and AI, given growing public opposition to the buildout of data centers, we believe markets can grind higher regardless of the outcome as investors applaud falling uncertainty,” Continuity Group’s Justin Buell wrote.

2. Defense stocks

The idea that a Democratic victory could push the US and Iran toward a resolution has spoiled the year-long rally in defense stocks.

Here were some of the sector’s most notable moves:

3. Trump Media, TRUMP coin, other cryptos

Investments tied to Trump and his family’s interests were battered by the election results. Trump Media & Technology Group, one prominent piece of the Trump Trade, cratered 23% by Wednesday afternoon.

TRUMP coin, Trump’s cryptocurrency, dropped 17% alongside other tokens associated with Trump’s family.

These investments are “hyperspeculative” and don’t trade on clear fundamentals, B. Riley’s Hogan said.

“I don’t know that there’s any fundamental reasons for them to even exist. And since they do, not surprising to see the Democratic sweep of Congress would certainly cast a harsher light on the potential as investment vehicles,” he said.

The winners

1. Healthcare stocks

Investors are feeling more bullish on healthcare with democrats in charge of Congress. Markets are pricing in a higher probability that democratic lawmakers repeal some of the cutbacks to programs like Medicaid and Medicare, Hogan said.

Healthcare stocks have also outperformed in the months leading up to the midterms, he added, pointing to the secular growth potential analysts have been eyeing in the sector.

Here were some of the sector’s most notable moves:

2. Renewable energy stocks

Renewable energy stocks also gained, attesting to expectations that a Democratic Congress will push policies that could give the sector a boost.

“They’re catching a bid with the concept that there may be more sponsorship of that sector,” Hogan added.

Here were some of the sector’s most notable moves:

3. US Treasurys

Investors are also directing their attention to one major perk of the Democratic sweep: the idea that lawmakers could rein in the US-Iran war, potentially cooling oil prices and the inflationary impacts of the conflict.

The war has been a stumbling block for markets for most of 2026. Should Democrats push for an end to the war, and if oil flows rise back to pre-war levels, inflationary pressures could ease throughout the economy and lessen the need for the Fed to hike rates.

Investors are also cheering the idea that a possible resolution to the war will remove a big pressure on the fiscal situation, as fears about debt and deficits have forced yields higher all year.

Treasury yields declined throughout the maturity curve.

Here were some of the most notable moves:

4. Gold and bitcoin

The same logic is boosting gold and bitcoin. As the market pares rate-hike expectations, it makes US Treasurys and the dollar less competitive against non-yielding assets like gold and crypto, which encourages flows into those assets, Ranim Turfa, the head of research and market analysis at Tickmill’s Middle East and North Africa arm, wrote in a note.

Gold rose nearly 3% to $4,054 an ounce by Wednesday afternoon.

Bitcoin jumped 3%to trade around $79,864.