US Midterm Elections: The biggest stock winners and losers of the Democrat sweep

The sweep made by Democrats across the House and Senate in the recently concluded midterm elections in the US may have triggered a sharp rally on Wall Street. But some sectors, stocks and pockets bore the brunt of the outcome too, most of which are linked either to US President Donald Trump, one of his biggest backers Elon Musk, or a theme that the administration has pushed significantly - Artificial Intelligence.The Biggest Loser Of The Trump Election DefeatThe biggest loss did not come in any specific stock, it came in cryptocurrencies and the firms linked to the US President, which has been one of his biggest source of income in the past year as per his financial disclosures.Prices of the WLFI token, promoted by World Liberty Financial, co-founded by Trump, fell 6%, while a memecoin named after him fell 19% in value, according to CoinGecko.com data.Shares of Trump Media and Technology Corp fell 25% after the election outcome, while an Exchange Traded Fund (ETF) coded DJTU, which offer leveraged exposure to Trump media shares, tanked nearly 50%.Texas-Based AI Data Center Companies SulkThe other major loser were AI data center infrastructure providing companies, particularly those based out of Texas, a traditional republican state, which saw a democrat sweep. Fears that the newly elected democrat governor, who campaigned against the unrestricted data center development, sent those stocks tumbling. Texas accounts for nearly 30% of the US data center capacity set to come online in 2028.Shares of Galaxy Digital fell 17%, Hut 8 Corp. fell as much as 23%, while Cipher Digital, Core Scientific and IREN fell at least 10%.Elon Musk's Loss Of FaceElon Musk, the world's richest man, and one of the biggest Republican backers also suffered after the election outcome. Shares of both Tesla Inc., and SpaceX, fell nearly 4% on Wednesday, although the outcome appears modest, compared to the losses seen by other companies.Defence Stocks A CasualtyDefence stocks were the other major casualty of the Democrat sweep, not just in the US, but European defence companies also saw losses.Contractors such as Lockheed Martin and Northrop Grumman Corp. fell 7% and 4.5% respectively, while a 30-member S&P 1500 Aerospace and Defence index fell 1.6%. A Goldman Sachs Group basket of European Defence firms fell 1.8%, while BAE Systems, based out of the UK, fell over 4% as over 50% of its topline comes from the US.Donald Trump had called for $1.5 trillion in defence spending for fiscal 2027 earlier this year, but that may now come under cloud with the Democrat sweep as there will now be fears of tighter oversight and funding delays.Hyperscalers, Apple, Emerge WinnersWhile most of the broader market rallied, particularly the old economy names like Walmart and peers, the hyperscalers were not to be left far behind either.Shares of Amazon surged 8% on Wednesday, followed by its peers Alphabet, Microsoft, Meta and Apple, which gained 6%, 4%, 3% and 7% respectively. Apple also recently received tariff refunds from the Trump administration.Nvidia was the only laggard among the big tech firms, ending 3% lower. However, neoclouds or AI cloud providers like CoreWeave, which has already seen steep losses, fell another 10% after Baird analysts warned that the election results are a sentiment headwind for the stock.