Remember that definitely-not-financial-advice didn't give anyone yesterday?

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Here's the larger picture.

This is what a blue tsunami looks like, apparently @finviz_com

[image or embed]— Mike Zaccardi, CFA, CMT (@mikezaccardi.bsky.social) November 4, 2026 at 1:00 PM

I haven't had many chances to say this in the over a decade we've been running this blog, but this strikes me as the market behaving perfectly rationally.

As mentioned frequently before, Trump was combining Hoover's tariff policy with Nixon's approach to Fed independence, both cranked up to eleven, while deporting a large part of a key segment of the labor force, all combined with massive deficit and rampant corruption. Restoring at least some measure of checks and balances reduces a number of risks to the economy (and possibly reduces the chance of escalation in Iran) and it makes sense for the broader market to reflect that.

Best day for the Dow in 19 months. @barchart.com

[image or embed]— Carl Quintanilla (@carlquintanilla.bsky.social) November 4, 2026 at 2:59 PM

As for the isolated losers, we've already discussed some of the reasons Elon Musk is screwed, starting with but by no means limited to this:

New Dem Texas AG Campaigned on Investigating Elon Musk

“If we’re giving Elon Musk preferential access to state contracts because of his wealth and connections, that’s corruption,” Nathan Johnson tweeted last month. “We cannot put the interests of our state aside to pay monopolists and insiders three times what their competitors charge. I’m ready to investigate.”

Musk moved the heart of his operations to Texas in the past few years — Tesla in 2021 and SpaceX in 2024 — to escape California woke. That could backfire now, as Johnson will have the power to probe and prosecute state-level crimes without needing any DOJ cooperation.
- Kate Riga

Elon Musk Spent Almost Half a Billion on the Midterms

It was a whopping $474 million — the most given by any one donor in a single election cycle in American history. And it didn’t work out.

In Texas in particular, Musk contributed $168 million to the Senate leadership fund, the vast majority of which went to Ken Paxton’s failed bid for Senate.

He has a Super PAC of his own, America PAC. Musk contributed around $216 million to America PAC this cycle.

All this makes Musk’s 2024 giving seem like small change. He gave $290 million in support of Trump that year. He then gained unprecedented access to the highest levels of government, and started off 2025 by unleashing DOGE on a spree of firings and agency shutdowns that are still rippling throughout the government and world.

He spent around $180 million more in 2026. Now, he’ll have a Congress and several state governments — including his home state of Texas — in opposition.
- Josh Kovensky

But why did the rest of the Magnificent Seven,* with one notable exception, actually see their stocks go up?

Here's my take. The biggest short term impact of the blue tsunami is likely to be a slow down in data center construction. I'm not sure how much of a hit companies like Amazon and Microsoft would take from this. They're already major players in cloud computing. It's even possible that, given the concern over AI capex, they might benefit from an excuse to slow down.

Google et al were all massively profitable companies before the AI bubble. NVIDIA? Not so much. Though always a profitable company, it was nothing like the NVIDIA of 2026. Its market cap has increased 1,300% in the past four years (with revenues following a similar trajectory, almost entirely due to the AI bubble). If the data center build out (by some metrics, the largest infrastructure project in history) slows to a reasonable rate, the main supplier of chips for that build out could very well take a hit.

Of course, at the end of the day, Silicon Valley's is still tied to Trump in numerous ways, and that's a relationship that is likely to haunt them for a long time.

Let's not forget how quickly the tech executives got on their knees and kissed up to Trump immediately after he was elected. No flip-flopping allowed, fellas! You made your bed. You loved being friends with the Trump admin. www.cnbc.com/2024/11/06/t...

[image or embed]— Ed Zitron (@edzitron.com) November 4, 2026 at 9:45 AM

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My first screen cap caught the numbers rolling over like an old time odometer which was too cool to leave out.