Overnight, the U.S. stock market landscape was completely reshaped. Democrats swept Congress, and this blue wave split the tech sector in two, leaving some investors delighted and others nursing steep losses.
The hardest hit was the Neocloud computing infrastructure sector. Hut 8 plunged nearly 23%, while CoreWeave, IREN, and Core Scientific generally fell more than 10%. Even Nvidia pulled back by over 3%. The supporting power sector also came under pressure: GE Vernova dropped more than 11%, and Vistra sank over 12%.
It all came down to Texas’s change of governor. Gina Hinojosa won the seat, becoming Texas’s first Democratic governor in more than 30 years. Her campaign promise was to immediately halt approvals for new data centers. According to Goldman Sachs estimates, this policy shift could affect 45% of planned data center capacity expansions nationwide, with Texas alone accounting for 25%. That puts roughly 13 GW of planned computing capacity expansions in jeopardy. With new computing capacity growth slowing, operators reliant on expansion and supporting power companies were naturally among the first to be sold off.
But markets are always clearing out some positions while searching for the next big theme. Restrictions on computing capacity expansion have amplified the scarcity of existing capacity, directly benefiting traditional cloud providers with established computing resources. Microsoft surged 6.7%, Amazon rose 6.1%, and Google closed up 4%. The combined market capitalization of the five major cloud giants increased by nearly a trillion in a single day. Google, which we positioned ourselves in ahead of time last week, has now taken off nicely. The logic is simple: new supply is constrained, computing costs rise, major players cut capital spending, and free cash flow actually improves.
In line with Democratic policy preferences, renewable energy and healthcare stocks also strengthened. The signals sent by this election will shape not only the market today, but also the tone of the election two years from now. The pace of sector rotation is already clear. We need to understand the shift in expectations driven by policy, then allocate our positions accordingly.
There are always opportunities in different parts of the market. Avoid blindly chasing rallies or selling into declines; distinguish policy-driven tailwinds from short-term headwinds. I’ll continue tracking U.S. policy and market developments and share the latest updates with you.
#币安安全事件恢复进展：98%被盗资产已回填 #币安将恢复更多资产提现
The hardest hit was the Neocloud computing infrastructure sector. Hut 8 plunged nearly 23%, while CoreWeave, IREN, and Core Scientific generally fell more than 10%. Even Nvidia pulled back by over 3%. The supporting power sector also came under pressure: GE Vernova dropped more than 11%, and Vistra sank over 12%.
It all came down to Texas’s change of governor. Gina Hinojosa won the seat, becoming Texas’s first Democratic governor in more than 30 years. Her campaign promise was to immediately halt approvals for new data centers. According to Goldman Sachs estimates, this policy shift could affect 45% of planned data center capacity expansions nationwide, with Texas alone accounting for 25%. That puts roughly 13 GW of planned computing capacity expansions in jeopardy. With new computing capacity growth slowing, operators reliant on expansion and supporting power companies were naturally among the first to be sold off.
But markets are always clearing out some positions while searching for the next big theme. Restrictions on computing capacity expansion have amplified the scarcity of existing capacity, directly benefiting traditional cloud providers with established computing resources. Microsoft surged 6.7%, Amazon rose 6.1%, and Google closed up 4%. The combined market capitalization of the five major cloud giants increased by nearly a trillion in a single day. Google, which we positioned ourselves in ahead of time last week, has now taken off nicely. The logic is simple: new supply is constrained, computing costs rise, major players cut capital spending, and free cash flow actually improves.
In line with Democratic policy preferences, renewable energy and healthcare stocks also strengthened. The signals sent by this election will shape not only the market today, but also the tone of the election two years from now. The pace of sector rotation is already clear. We need to understand the shift in expectations driven by policy, then allocate our positions accordingly.
There are always opportunities in different parts of the market. Avoid blindly chasing rallies or selling into declines; distinguish policy-driven tailwinds from short-term headwinds. I’ll continue tracking U.S. policy and market developments and share the latest updates with you.
#币安安全事件恢复进展：98%被盗资产已回填 #币安将恢复更多资产提现
