Wall Street reels from a sweeping anti-Trump wave in the 2026 midterms, with Elon Musk suffering tens of billions in losses as Republican control of Congress flipped to Democrats. BC Partners withdrew its bid to relaunch LIV Golf following its Chapter 11 bankruptcy, while Oracle scrapped a billion-dollar chip leasing deal with Tencent under Trump administration pressure. The election results threaten the AI boom, as Democrats won key gubernatorial races and voters approved data centre restrictions in 38 of 47 local votes.
Analysts warn about 37 gigawatts of 2028 data centre capacity could face "an outright pause," impacting the AI supply chain that fueled private equity windfalls in firms like Silver Lake, Advent, and Blackstone. Major investment banks including Goldman Sachs, Morgan Stanley, and JPMorgan question whether IPO momentum will sustain, especially with Anthropic's expected listing facing voter antipathy toward AI. Tuesday's results mark a significant shift in Wall Street dynamics, with ripple effects extending from data centre construction to private equity and banking sectors.
Source: Financial Times Companies · Summarized by HeadlinesBriefing