We could not have imagined a bigger Blue Wave than we got last night. The market’s first reaction was about what we expected, as Nasdaq futures slid 2.4% overnight.
We could not have imagined a bigger Blue Wave than we got last night. The market’s first reaction was about what we expected, as Nasdaq futures slid 2.4% overnight. What we didn’t see coming was the recovery. By sunrise all three index futures had climbed back into positive territory. It seems that gridlock is a word the market can live with.
In investor terms, possibly the most impactful election result came in the Texas governor’s race. The incoming governor, Democrat Gina Hinojosa, campaigned on a promise to freeze new data centers until stronger protections are developed. Texas holds about 25% of the planned capacity in the US. The AI stack is suffering in Wednesday’s premarket, with CRWV, INTC, and most of the AI related power names dropping before the bell. CRWV, particularly, has dropped past its 52-week low of $49.46.
Defense names are down on fears that the federal budget will be trimmed, and TSLA is off by 5% on expectation that Musk’s federal contracts will come under congressional scrutiny. On the positive side, hospitals and Medicaid insurers are gaining on hopes that enhanced ACA subsidies make a comeback. Solar is rallying, with FSLR up about 7% in the premarket.
While Nasdaq futures are up, they are far from emphatic. Blurring the picture is the spike in Dow futures, which are up over 900 points on advances across a broad swath of “real economy” names. Keep your shopping list handy, and patiently watch the action this morning. We will post to our trading board the most attractive dips, as opportunities present themselves.
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