Good morning, it’s Wednesday, November 4, 2026. Wall Street went to bed scared and woke up buying.

After Democrats swept Congress and President Trump said he would accept the results, futures reversed early losses as investors bought the recent dip in stocks.

S&P 500 futures had been down as much as 1.4% overnight, and Nasdaq 100 futures had been down as much as 2.4%.

The setup: The broad market likes gridlock. But Texas may be a separate problem for the AI trade, and Elon Musk’s companies are taking the first hit.

➤ Palantir and Wall Street are in on it… →
(from The Oxford Club)

What's moving the market: A Democratic sweep lifted stocks and Treasuries and pushed the dollar lower as traders weighed what it means for Trump’s agenda. Gold is up 2.8% to about $4,050.

TODAY’S CATALYSTS

Most important: ADP. September’s official payrolls showed just 29K jobs, and unemployment rose to 4.2%. Another soft print ahead of Friday’s jobs report could keep pulling yields lower.

AI data centers need enormous amounts of electricity and one man believes this overlooked company could help supply the fuel behind that boom.

It generates billions in operating income, has an agreement with Palantir and was recently valued below $8 billion.

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Democrats needed a net gain of four Senate seats and three House seats. The AP said early Wednesday they had exceeded the House threshold, and flipped seven Republican-held Senate seats.

Futures reacted in two stages. First, they fell as traders priced in new regulation. Then the uncertainty cleared and buyers stepped in.

History supports staying calm. Deutsche Bank found that over 80 years, the S&P 500 has averaged an 8% gain from one month before a midterm to two months after. The same analyst noted that 21 midterms is a very small sample.

What this means for investors: Divided government usually means fewer big policy surprises. Markets care more about what cannot pass than what can.

The bigger shock came from Austin. Democrat Gina Hinojosa defeated Gov. Greg Abbott. She has proposed pausing new data center projects in Texas.

Texas has more than 300 data centers, with at least 253 more in development.

Tesla and SpaceX fell about 4% in premarket trading. Musk spent at least $474 million on the midterms, including $224 million in Texas, where both Paxton and Abbott lost. SpaceX is building multiple gigawatts of data center capacity, some of it in Texas.

That matters well beyond Musk. Texas is central to the AI buildout, and any pause there touches chips, power, and infrastructure stocks.

If you have ANY money in the stock market, here's the ONLY question that matters right now:

Are AI stocks in a bubble, set to burst?

Or are we at the first stage of a mega boom?

See the alarming answer...

If gridlock holds → fewer major policy shifts; historically supportive for stocks into year-end.

If the dollar keeps falling → potentially supportive for gold and multinational earnings.

If Texas moves to pause data centers → pressure on AI infrastructure names; utilities and power developers with Texas exposure face the most direct risk.

The opportunity: Gold as a portfolio stabilizer.

Why now: Gold jumped 2.8% overnight to roughly $4,050, while the dollar fell after the vote.

Bull case: A weaker dollar, falling yields, and political uncertainty all tend to support gold.

Risk: Gold has already run hard. A peace breakthrough with Iran or a dollar rebound could cool it quickly.

Watch: Whether gold holds above $4,000 through Friday’s jobs report.

Wells Fargo’s Ohsung Kwon warned that a Democratic win in the Texas governor’s race could be a left-tail event for the AI trade.

Bank of America’s Michael Hartnett said a Democratic Senate plus the Texas governorship could drive stocks more than 10% lower into year-end.

That scenario just happened. The Nasdaq already sits more than 10% below its October record.

Watch: Any formal timeline for a Texas data-center pause.

Money is leaving crypto. Bitcoin ETF outflows topped $1.06 billion, and crypto liquidations hit $657 million as Bitcoin slipped below $76,000.

Bitcoin has since bounced back above $78,000, but it remains roughly 41% below its October 2025 record high.

That’s worth watching because sustained ETF outflows signal institutions are reducing risk, not just traders.

The chart above shows how far futures traveled overnight. Nasdaq futures swung more than three percentage points from low to high before most Americans woke up.

Moves like that usually reflect uncertainty clearing, not new fundamentals. The question for today’s session is whether buyers hold those gains after the open.

Markets are treating divided government as a known quantity, and that’s usually good for stocks. The real risk sits in Texas, where AI infrastructure suddenly has a political problem.

Stay constructive, but keep some dry powder ready in case AI names get hit again.

P.S. If you own a broad technology or AI fund, you may hold one of these vulnerable names without ever choosing it yourself.

I believe this is the moment to look under the hood — before the market does it for you. Watch my briefing before it is too late.