The 2026 midterm elections handed Democrats a decisive victory, securing control of the House and Senate.
Market Reaction to Election Results
Crude oil prices fell from $96 to $88 per barrel as investors hoped for a potential Iran deal.
President Trump acknowledged the result on Fox News, saying Democrats fought hard, and told The New York Times he was willing to work with Congress.
Texas Data Center Policy Remains Open
Governor‑elect Gina Hinojosa pledged that all currently permitted data centers in Texas may finish construction through 2028 and beyond.
She announced legislation requiring new data centers built in 2028‑2029 to pay taxes, maintain stable consumer power prices, use union labor and avoid water strain.
Analysts say the reports of a total ban are false, driven largely by Chinese propaganda.
Nvidia CEO Scandal Unfolds
Nvidia chief Jensen Huang apologized after admitting an extramarital affair with colleague Alice Huang, a case that has drawn attention as a possible Chinese honeypot incident.
The company’s board stated no evidence of compromised national security or trade secrets, and said its inquiry will examine all information.
President Trump defended Huang, saying he would “certainly take him” on his upcoming China trip and that no wrongdoing had been proven.
TSMC Reports Strong Sales Growth
Taiwan Semiconductor (TSM) announced a 59.7% year‑over‑year increase in October sales, underscoring the accelerating AI revolution.
Analysts note expanding order backlogs for AI and data‑center stocks, with no signs of slowdown despite political rhetoric.
Democratic governors in major data‑center states such as Pennsylvania, Virginia, Georgia, North Carolina, Ohio and Texas are unlikely to block new facilities, though they may impose higher taxes.
October CPI Surge Fuels Rate‑Hike Expectations
The Labor Department reported a 0.4% rise in the Consumer Price Index for October, exceeding the 0.3% forecast.
Core CPI, excluding food and energy, climbed 0.3%, also above the 0.2% consensus, while energy prices jumped 0.7% and food prices 0.5%.
Shelter costs rose 0.3%, keeping inflation pressure high and prompting Treasury yields to climb across the curve, making a December Fed rate hike fully anticipated.
U.S. Envoy Seeks Peace in Ukraine Talks
Negotiations in Abu Dhabi involving Jared Kushner and Steve Witkoff aim to reshape European security and accelerate a ceasefire in the Russia‑Ukraine war.
European nations expressed outrage, fearing the talks could undermine their defense commitments and expand the conflict beyond Ukraine.
The United States stresses it does not want to be drawn into a proxy war with Russia, even as Moscow pushes to renegotiate broader European security terms.
