Energy and Tech Stocks Slide After Democratic Midterm Sweep

Energy futures and technology stocks declined on November 4, 2026, following a Democratic sweep in the U.S. midterm elections. Brent futures fell 0.8% to $102.7 per barrel, while West Texas Intermediate dropped 0.25% to $95.8. European gas and heating oil prices also saw slight decreases as the results sparked concerns regarding potential legislative gridlock on Capitol Hill.

Elon Musk saw shares of Tesla, Inc. and his aerospace company fall between 5% and 8% in premarket trading. Investors reacted to the potential for tighter AI regulations and increased scrutiny of a possible merger between the two companies. The Democratic victory in Texas is viewed as a significant blow to Musk, who spent over $400 million supporting Republican candidates and whose Terafab semiconductor project may face tighter data center construction rules.

President Donald Trump responded to the shift in political power by warning that he would become "Mr. Veto," though he also congratulated the winning Democrats and expressed a willingness to work with them. Despite the market volatility, Morgan Stanley raised its price target for Musk's aerospace venture to $300, citing strong revenue forecasts for 2027 and 2028.