Five points

Daily update

US Democrats have decisively won the midterm elections. State results will matter to investors because data center decisions often take place at a state level and some Democrat governors are publicly opposed. At the very least, data center builders are likely to have to offer more incentives to local communities.
The federal results raise five points for investors. Fiscal gridlock seems more likely, which has supported US government bonds. President Trump's nominees are less likely to be confirmed, including any future vacant Federal Reserve governor positions. Members of the administration will have to divert time to preparing for congressional hearings.
The Senate shift places Democrats in a strong position in two years’ time (when the available seats favor Democrats). This is relevant for the legislative agenda of the next administration. The unity of the Republican Party is also of investor interest, as Trump's very personal endorsements did not translate into electoral success.
The Californian ballot initiative results on the billionaires' tax are not yet known (though the significant campaign spending is an economic contribution). Nonetheless, this initiative is part of a global tend—alongside Italy's recently proposed wealth exit tax. Private wealth is at record highs and indebted governments will seek to mobilize that wealth.