WS #16849

Markets are digesting a significant political realignment in the US, with Democrats sweeping both chambers of Congress, triggering a sharp repricing of energy and infrastructure assets. Oil prices have plunged over 13% as the market prices in a de-escalation of Middle East tensions and reduced geopolitical risk premiums, while clean energy stocks rally on expectations of sustained climate policy. This shift has directly pressured Tesla and SpaceX, which fell sharply following Elon Musk's public support for the GOP, and has triggered a broad selloff in data center and AI infrastructure stocks as investors reassess the regulatory and subsidy landscape for tech expansion. In corporate news, the AI buildout narrative remains robust despite the political headwinds, highlighted by Google's announcement of a $15 billion investment in Malaysian data centers. However, the sector faces near-term volatility as major players like Qualcomm, Arm, and Coherent report earnings after the close. In the energy and commodities space, Freeport-McMoRan's approval of a $4.5 billion copper expansion signals continued industrial demand, while AGF Nitrogen's consideration of ammonia plant shutdowns due to high gas prices points to structural margin pressures in the fertilizer sector.