LIVE MARKETS-Tech up post election; defense shares, energy down

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TECH UP POST ELECTION; DEFENSE SHARES, ENERGY DOWN

All three of the major US stock indexes are more than 1% higher early on Wednesday as Democrats' sweep in Tuesday's US midterm vote removes some anxiety over uncertainty of the election results in the near term.

But defense shares are lower, along with energy and data center stocks.

"To some extent, there is relief that it wasn't close and we didn't enter a period of arguing over ballots and things like that," says Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey.

"It's possible investors are thinking that some of the worst parts of the (Trump) agenda from a business perspective... the tariffs in particular, could be stymied or even rolled back," he says.

But Meckler says the rally could be short-lived given the potential for AI-related legislation.

"It's likely to introduce a period of greater regulation," he says.

While top AI players such as Meta Platforms META.O are higher on Wednesday, shares of data center builders and operators are lower, including Applied Digital APLD.O, which was down 4.8%. The S&P 500 tech sector .SPLRCT is up 1.7%, while Advanced Micro Devices AMD.O is up following the company's quarterly report.

The energy sector .SPNY is down along with oil prices, while defense stocks including Northrop Grumman NOC.N are lower.

One of the most important questions going forward is how the vote impacts the US war with Iran, Meckler says.

The war has driven up energy prices and worries about inflation and interest rate hikes.

"These are more emotional markets right now," and the moves could reverse by day's end, he says.

Here is the market snapshot:

(Caroline Valetkevitch)

EARLIER LIVE MARKETS POSTS:

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THE EUROPEAN STOCK MARKET ISN'T THE ECONOMY CLICK HERE

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