'Violent Tech Selling': Here Are The Stocks Tanking–And Surging–As Democrats Eye Full Control

Plus: Jon Ossoff, Chuck Schumer Declare Victory For Democrats In Georgia Senate Election With Race Yet To Be Called

TOPLINE

The odds that Democrats take control of the Senate are greater than ever the day after the Georgia Senate runoffs, and the stock market is already unraveling some of the gains and losses priced in under the expectations of a split Congress, as investors look toward ramped-up spending in industries like clean energy but also heightened regulation that could cripple big tech.

KEY FACTS

Shortly after the market open, the Dow Jones industrial average and S&P 500 were virtually flat and down about 0.4%, respectively, while the tech-heavy Nasdaq sank 1.4%.Insurance stocks Cigna, Anthem and Humana are among firms leading market losses, falling roughly 4% each as investors worry sweeping healthcare legislation from Democrats could ding long-term prospects for the industry.

Many of the day's losers are in technology, and namely big tech, on renewed expectations of heightened regulation, with Facebook shedding 3% while Microsoft and Apple each tank 4%.

On the bright side: Shares of clean energy providers, who experts believe could boom under a Democrat-controlled government, headed up market gains, with First Solar, Enphase Energy and SolarEdge Technologies climbing 8%, 7% and 5% respectively. 

That rally extended to electric-vehicle makers: Tesla, Fisker and GM all climbed about 2% Wednesday.

In the S&P, building-material company Martin Marietta and construction firm Vulcan Materials shot up 7% and 6%, reflective of expected spending under infrastructure plans long touted by the incoming administration.

Meanwhile, shares of gambling firms DraftKings and Penn National Gaming climbed nearly 6% and 3% after New York Gov. Andrew Cuomo signaled he was open to allowing online sports betting in the state, touting an opportunity to become "the largest sports wagering market in the United States."

CHIEF CRITIC

"I don't expect major stock market implications surrounding a 50-50 tie in the Senate," says David Bahnsen, the chief investment officer of $2.5 billion advisory The Bahnsen Group. "While the Vice President's vote means that a straight-party line vote would belong to the Democrats, some of the market unfriendly policies that investors have been worried about in the event of a blue wave are still not going to come so easily," he adds, pointing to three moderate Democratic Senators and a similarly razor-thin lead for Democrats in the House.

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