๐๐๐ฆ๐จ๐๐ซ๐๐ญ๐ฌ ๐๐๐ค๐ ๐๐จ๐ญ๐ก ๐๐จ๐ง๐ ๐ซ๐๐ฌ๐ฌ & ๐๐๐ง๐๐ญ๐: ๐๐ก๐๐ญ ๐๐ญ ๐๐๐๐ง๐ฌ ๐๐จ๐ซ ๐๐๐ซ๐ค๐๐ญ๐ฌ
Democrats have won control of both the House and the Senate, and markets read the result as bad news for data centres, AI, crypto, and would benefit healthcare and financials.
What the Bond Market Heard
Bond investors assumed a Democratic Congress would limit further government deficit spending, defence included. Democrats do want to restore spending on health and food stamps, but Trump can still veto it.
The Treasury refunding announcement is due Wednesday, and the market has been hoping for less borrowing at the longer end. That makes it the first real check on whether the bond market read this right.
Washington Is Stuck, but Governors Are Not
Democrats are expected to push for tougher rules on AI and data centres, an issue that turned politically toxic in many races in recent months. Getting a bill through is another story. Trump has vowed to veto, and Democrats do not have a veto-proof majority in the Senate.
The real leverage may sit closer to home. Democrats won a surprisingly large number of governorships, which gives them local tools to slow data centre projects and add rules on water and power. Analysts singled out the flip of the Texas governorship as a risk to the stateโs massive data centre buildout.
Slower Data Centres, Softer Inflation?
Data centres are currently the main engine of US economic growth. More hurdles in their way would slow that engine, which could ease inflationary pressure and limit the number of Fed hikes.
What Comes Next in January
When the new Democratic majority takes over in early January, analysts expect investigations into the Trump administration, the Iran war, tariffs, immigration policy, and plenty more.
JPMorgan flagged โinvestigation riskโ for business leaders tied to Trump donations, including MegaCap Tech.
The loudest risk sits in Washington. The one that sticks may be in state capitals.
Democrats have won control of both the House and the Senate, and markets read the result as bad news for data centres, AI, crypto, and would benefit healthcare and financials.
What the Bond Market Heard
Bond investors assumed a Democratic Congress would limit further government deficit spending, defence included. Democrats do want to restore spending on health and food stamps, but Trump can still veto it.
The Treasury refunding announcement is due Wednesday, and the market has been hoping for less borrowing at the longer end. That makes it the first real check on whether the bond market read this right.
Washington Is Stuck, but Governors Are Not
Democrats are expected to push for tougher rules on AI and data centres, an issue that turned politically toxic in many races in recent months. Getting a bill through is another story. Trump has vowed to veto, and Democrats do not have a veto-proof majority in the Senate.
The real leverage may sit closer to home. Democrats won a surprisingly large number of governorships, which gives them local tools to slow data centre projects and add rules on water and power. Analysts singled out the flip of the Texas governorship as a risk to the stateโs massive data centre buildout.
Slower Data Centres, Softer Inflation?
Data centres are currently the main engine of US economic growth. More hurdles in their way would slow that engine, which could ease inflationary pressure and limit the number of Fed hikes.
What Comes Next in January
When the new Democratic majority takes over in early January, analysts expect investigations into the Trump administration, the Iran war, tariffs, immigration policy, and plenty more.
JPMorgan flagged โinvestigation riskโ for business leaders tied to Trump donations, including MegaCap Tech.
The loudest risk sits in Washington. The one that sticks may be in state capitals.
