Dow Surges 1,500 Points as Midterm Elections Ease Uncertainty; Tech Stocks Lead Gains, Memory Shares Sold Off; Amazon Rises 6%

SpaceX (SPCX) fell 3.81%, while Tesla (TSLA) dropped 3.34%. The Democratic victory in the Texas gubernatorial election raised market concerns over local data center construction and the regulatory environment. Both Tesla and SpaceX have major operations in Texas, where SpaceX is also advancing data center projects.

Hyperscale cloud providers strengthened, with Microsoft (MSFT) rising 6.68%, Amazon (AMZN) gaining 6.12%, Google-A (GOOGL) advancing 3.18%, and Meta (META) up 1.44%. Market analysis suggested that higher regulatory barriers could instead bolster the competitive advantages of major cloud providers. Large cloud providers such as Amazon, Microsoft, and Google have strong financial backing as well as mature data center construction and operational capabilities, while emerging AI cloud providers face greater pressure.

The performance of major tech stocks today is shown in the chart below:

The Philadelphia Semiconductor Index fell 3.13% to close at 10,268.65 points. Among its 30 constituents, 4 advanced and 26 declined.

Memory stocks suffered a sell-off, with Seagate Technology (STX) down 8.13%, SanDisk (SNDK) falling 7.91%, Micron Technology (MU) sliding 7.00%, Western Digital (WDC) dropping 6.77%, and SK Hynix (SKHY) declining 5.12%.

Qualcomm Signs Multi-Year Agreement with SpaceX to Support Nationwide Terrestrial 5G Network in the US

Qualcomm (QCOM) announced that SpaceX will adopt its Dragonwing base station hardware platform and related software to build the Starlink Mobile nationwide terrestrial 5G network in the US. The two parties have signed a multi-year agreement, with SpaceX planning to deploy tens of thousands of sites starting in 2027. Qualcomm will provide radio and baseband processing platforms and software to support large-scale terrestrial base station deployment. This agreement marks new commercial progress in SpaceX's plan to enter the US mobile communications market.

Google to Invest $15 Billion to Expand Data Center and Cloud Operations in Malaysia

Google announced plans to invest $15 billion in Malaysia between 2027 and 2028 to build a new data center campus and invest in local power supply, water resources security, and skills training to meet infrastructure demand driven by the growth of AI services. Google expects that during construction, the campus will contribute approximately $1.1 billion annually to Malaysia's GDP and support over 37,000 local jobs; once operational, it is expected to support over 9,000 jobs annually. All above figures are company projections.

Meta Launches Maiden Euro Bond Issuance with Maturities of Up to Over 38 Years

Meta (META) launched its maiden euro bond issuance after pricing a $15 billion dollar bond offering on Tuesday. According to people familiar with the matter, the issuance is divided into six tranches, ranging from slightly over 4 years to over 38 years. Initial spread guidance for the shortest and longest tranches is around 140 and 370 basis points above mid-swaps, respectively. This is Meta's first bond issuance outside the US domestic market, underwritten by Citi and Morgan Stanley, with pricing expected later Wednesday. The previous dollar bond issuance received up to $58 billion in subscription orders.

CoreWeave Five-Year CDS Rises to 1139.7 Basis Points as Credit Risk Pricing Comes Under Pressure

On Wednesday, CoreWeave's (CRWV) five-year credit default swap (CDS) spread rose about 3% to 1139.7 basis points, indicating that investors are demanding higher fees for default protection. Meanwhile, the yield on the company's 9.75% bond due 2031 rose 3 basis points to 15.919%. Policy uncertainty surrounding data center construction has added a new risk factor to an industry already under financing pressure.

Texas election results trigger concerns over data center construction, with roughly 27% of planned capacity located in the state

Democrat Gina Hinojosa defeated incumbent Republican Governor Greg Abbott to win the Texas gubernatorial election. Hinojosa previously advocated an immediate moratorium on new data center construction, though this proposal does not yet constitute an enacted policy. Wells Fargo estimates that Texas accounts for approximately 27% of planned U.S. data center capacity. Dan Ives, a partner at Yorkville Ives & Co., believes the election result could slow U.S. data center construction and increase headwinds for AI and technology-related legislation over the next two years. He views the Texas election outcome as one of the primary risks that tech and AI investors need to monitor.

Goldman Sachs: Five Major Cloud Providers' Lease Commitments Reach $1.7 Trillion, Indicating Massive Future Cash Needs

In a research report on November 3, Goldman Sachs noted that five hyperscale cloud providers—Alphabet, Amazon, Microsoft, Meta, and Oracle—have combined lease commitments of about $1.7 trillion, with over 75% corresponding to leases that have not yet commenced. Furthermore, the five companies hold approximately $1.9 trillion in other unconditional purchase obligations, about $685 billion of which is scheduled to be paid by the end of 2027. Goldman Sachs noted that while some long-term commitments are already reflected in market capital expenditure forecasts, continuously growing contractual obligations still imply substantial future cash requirements. As AI infrastructure investment expands, public bond and private capital markets will continue to play a vital financing role.

This content was translated using AI and reviewed for clarity. It is for informational purposes only.