The market finished higher with dislocation on full display as eight sectors finished lower and only 37% of the components closed in the plus column.  Negative beta rules; I would like to see more uniformity. 

Show Me the Money

Wall Street commentators say there is no money to fund the AI buildout, and yet $104 billion has been raised in the past nine days, including $20.0 billion for Oracle (ORCL) yesterday (half stock, half senior debt).  Oracle shares rallied almost 6.0%.

Data Center Reprieve

Powering the data center has been the most logical AI buildout niche, yet these stocks have been walloped since the anti-data center campaign began. Yesterday, several key names, Bloom Energy (BE), Comfort Systems USA (FIX), Monolithic Power Systems (MPWR), and GE Vernova (GEV), were among the top ten advancers.

GEV is a slam dunk with only two global competitors.

After the Close

Advanced Micro Devices (AMD) posted strong results, beating Wall Street consensus on several key metrics:

The stock soared on the print – the big test is holding up today, but the fundamental story keeps getting better, and that’s the overall story for the AI revolution.

Markets Like When Midterms Are Over

But last night, when the Democrats took the House, equity futures turned lower. There will be nonstop threats against data centers.

I think the economic damage to individual states, even those that choose Democrats, is too high to completely reject data centers, but there will be additional speed bumps against what has become a fragile trade.

Last night's outcome was expected and, to a degree, a key reason AI stocks lost $5.0 trillion in valuation last month. Ultimately, I think the buildout continues.

Today’s Session

This morning feels very much like the rollercoaster ride after the 2016 presidential election. Heading into election night, the media suggested Donald Trump would not concede defeat and hinted it would spark a wave of turmoil. 

It turns out Hillary Clinton was loath to admit defeat.

Once the election was called for Trump, equity futures plunged to the lowest possible level (limit down) as the same pundits who got everything wrong up to that point began painting a picture of an angry president.  

Meanwhile, Clinton's delayed concession threatened the notion of a peaceful transition of power.

Clinton called Trump at 2:35 a.m., and Trump spoke to the nation at 2:50.

He was gracious and magnanimous.

The stock market took off.

Last night, equity futures reversed higher after President Trump said he accepted the results and will work with Democrats.

Of course, it won't be smooth, and there will be contentious battles, but the market also liked gridlock in DC, and that will be the case for the next two years.  Local issues are there, without a doubt, but for the most part, those are not the things that drive stocks.

This morning, the stock market is celebrating the peaceful transition of power.

For the stock market, fundamentals still matter most and, over time, will reward investors.

Here is an update from Charles Payne:

Comments

It's easy to feel down after this shellacking but let's look on the bright side. 19 of 19 times the market is up 6 months after the midterms and the results from the 2028 elections are likely to be better than they would have been had power in congress not changed in 2026! Mike Mayone on 11/4/2026 10:09:43 AM

If the late, great Rush Limbaugh were still alive, he would have warned our Greg Abbott. G.A. said many times, not to worry, Texas will never turn blue. Today he is in shock. Basically 3 or 4 counties (Dallas, SanAntonio, Austin, Houston) out voted the other 250 red counties. Sad day here. T TJL in Texas on 11/4/2026 11:12:02 AM

Thanks, Charles. Your video comments and insights are greatly appreciated, particularly in light of the negativity coming from the newly elected officials. Please keep being candid with both the good and the bad news as you see things developing. Gabe Prado on 11/4/2026 11:16:44 AM

There was no peaceful transition of power in 2016. The plot to overthrow the election was in place and in progress when Obama welcomed the Trumps to the White House. Michael Supplee on 11/4/2026 11:27:47 AM

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