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Defense, oil and Tesla shares fall and hospital shares rise after Democrats win Congress

AI-linked shares swung wildly and liquor makers rose on tariff-relief hopes, ABC News reports, while Trump Media lost 33% of its value.

Published 1 min readMoney and daily life
Overview

Democrats won control of in the elections held on Tuesday, and reacted. ABC News reports that shares tied to artificial intelligence swung wildly on worries that Democratic wins in statehouses and Congress could slow data center construction. Defense companies Northrop Grumman, Lockheed Martin, RTX and General Dynamics fell between 4% and 12% after Tuesday, as investors expected Democrats to push to end the US war with Iran.

Several big oil companies also lost ground, since investors figured that ending the war would push oil prices down. Hospital shares rose on hopes that and funding could be restored or boosted, and liquor makers rose on hopes of relief. Tesla and SpaceX fell after the midterms, and Trump Media lost 33% of its market value.

Breitbart News reports that Democrats flipped at least seven seats, with Alaska and Mississippi still uncalled. According to Breitbart, Vice President JD Vance wrote on X that the war is why Republicans lost, and Trump called that "largely true." ABC adds that crude prices plunged after the election and that the is weighing another rate hike in December.

Key figures
  • between 4% and 12%drop in Northrop Grumman, Lockheed Martin, RTX and General Dynamics shares after TuesdayABC News
  • more than $445 millionElon Musk's spending to help Republicans keep Congress, per ABC NewsABC News
  • 33%Trump Media's market value lost in three days after the electionABC News
  • at least 43Republican-held House seats Democrats flipped, per BreitbartBreitbart News
  • 3.9%economists' projected October inflation rate, up from 3.7% in SeptemberABC News

Three sides of the story

3 news outlets reported this

Tap a color or swipe sideways to switch sides.

Liberal1 outlet

Democratic sweep reshuffles winners and losers on Wall Street

ABC News leads its markets piece with the Democrats' "overwhelming victory" and what it did to Wall Street, sector by sector. AI-linked shares such as Nvidia and Lam Research "swung wildly" on worries about slower data center construction, while defense and oil companies fell on expectations that Democrats would push to end the war with Iran. Hospitals and liquor makers rose on hopes of restored funding and tariff relief.

It details Elon Musk's more than $445 million in spending for Republicans and the drops in Tesla and SpaceX, and says Trump Media lost 33% of its market value in three days. A second ABC News piece, a look at the week ahead, ties the Democratic sweep to "stubbornly high prices" for gasoline and groceries. It says economists project October inflation of 3.9%, crude prices plunged after the election, and the Federal Reserve weighs another hike in December.

It also reports that employers created 165,000 jobs in October but wages have lagged inflation.

Center0 outlets

Outlets on this side gave the story little coverage.

Conservative2 outlets

Why Republicans lost, and how the losses compare

Breitbart Business Digest opens its weekly wrap with a joke that the newsletter is ending "under orders from the new DSA masters of Capitol Hill." Its main section, "The Midterm Blu-Nami," says Democrats beat expectations, flipping at least seven Senate seats and at least 43 House seats, with Alaska and Mississippi uncalled and dozens of House races open. It compares the results with earlier midterms and says losing seven Senate seats is "not altogether that rare."

It then asks what went wrong for Republicans. It cites Vice President JD Vance writing on X that "the reason we lost is the war," Trump calling that "largely true,"

NBC exit polls in which about 74 percent called the war a crucial or major factor, and gasoline's weight in the consumer price index. The Washington Times reports that the Democrats' "overwhelming victory" in the midterms shook up Wall Street.

What a side did not mention
  • Liberal outlets did not mentionVance's post blaming the Iran war for Republican losses, and Trump calling it largely true Reported by Breitbart News
Money and daily life

ABC News reports that mortgage rates will likely stay high as the Federal Reserve weighs another rate hike at its December meeting, with the 30-year average near its highest level in nearly three years. Economists project October consumer inflation at 3.9%, and ABC says wage growth has not kept up with inflation.

All sources: 4 articles from 3 outlets

Liberal (2)

Conservative (2)

Congress

The US parliament: the Senate and the House of Representatives. A bill becomes law when both pass it and the president signs it.

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Midterm elections

US elections halfway through a president's four-year term. The whole House, a third of the Senate and many governors are elected. In 2026 Election Day was November 3.

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Wall Street

A street in New York where the stock exchange stands. In the news it means US financial markets and the big banks and investment firms as a whole.

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Medicaid

Public health coverage for people with low incomes, paid by the federal government and the states. The rules differ by state.

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Affordable Care Act (Obamacare)

The 2010 health law. It created marketplaces where people without employer insurance buy plans with subsidies based on income, barred insurers from turning away people with existing illnesses, and let states expand Medicaid.

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Tariff

A tax on imported goods, paid at the border by the importer, who usually passes some or all of it into prices. Governments use tariffs to protect their producers or to press the other side in a trade dispute.

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Senate

The upper chamber of Congress: 100 senators, two per state, elected for six years. It confirms judges and ministers and approves treaties.

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Federal Reserve (the Fed)

The central bank of the United States. It sets the key interest rate, which moves the rates on loans, mortgages and savings.

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