Nov 6, 2026 · 21 min · 11 segments
The stock market suffers one of its worst drops of the year amid fears that the war on Data Centers will cripple the tech industry, after winning back the House and Senate, Democrats promise a revenge…
Ben DomenechGuest
Cabot Phillips
Megan Basham
John BickleyHost
Georgia HoweHost
Yeah, historically speaking, investors love divided government and the gridlock that comes with it.
And as we've said many times on this show, markets hate uncertainty, and gridlock means certainty that not a lot is going to get done legislatively.
But reality definitely did set in yesterday, especially for companies that have gone all in on the AI tech boom of the last few years.
The tech-heavy Nasdaq index fell all the way into correction territory yesterday, sliding more than 5% in just a few hours.
And it was chip makers who took the biggest hit as Nvidia completely erased all of its gains it had made this year, falling 8% by the end of trading.
And then you had investors really pointing squarely at the Democrats who were taking over state houses and also DC.
After the blue wave, voters put Democrats in control of several key data center states.
And now investors are worried that billions of dollars in data center projects and future development could be completely stalled out.
One private equity manager told Reuters, quote, Wall Street badly needs a happy AI story right now.
Incoming Democratic Governor Gina Hinojosa not only unseated three-term Republican Governor Greg Abbott, but Democrats took control of the statehouse.
A A ban on all new data centers was a key part of Hinojosa's campaign.
She promised to ban all new data center approvals until the state legislature passes strict reforms, including ending all state tax breaks for new projects.
She's even threatened to review existing agreements that are already in the works.
Yeah, historically speaking, investors love divided government and the gridlock that comes with it.
And as we've said many times on this show, markets hate uncertainty, and gridlock means certainty that not a lot is going to get done legislatively.
But reality definitely did set in yesterday, especially for companies that have gone all in on the AI tech boom of the last few years.
The tech-heavy Nasdaq index fell all the way into correction territory yesterday, sliding more than 5% in just a few hours.
And it was chip makers who took the biggest hit as Nvidia completely erased all of its gains it had made this year, falling 8% by the end of trading.
And then you had investors really pointing squarely at the Democrats who were taking over state houses and also DC.
After the blue wave, voters put Democrats in control of several key data center states.
And now investors are worried that billions of dollars in data center projects and future development could be completely stalled out.
One private equity manager told Reuters, quote, Wall Street badly needs a happy AI story right now.
Incoming Democratic Governor Gina Hinojosa not only unseated three-term Republican Governor Greg Abbott, but Democrats took control of the statehouse.
A A ban on all new data centers was a key part of Hinojosa's campaign.
She promised to ban all new data center approvals until the state legislature passes strict reforms, including ending all state tax breaks for new projects.
She's even threatened to review existing agreements that are already in the works.
The rest of this transcript — segmented and speaker-labeled, so you land on the exact moment something was said
Search every transcript — by keyword, by phrase, or by meaning, across every show Radar indexes
Trends — what is surging across podcasts, measured against its own baseline
Alerts — when a name you follow appears in a newly indexed episode
No account is needed to search Radar.
