The Stock Market Plunges & Democrats Take Aim at Trump’s Allies | 11.6.26

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This is Morning Wire. ♪♪ After winning back the House and Senate, Democrats promise a revenge tour against the Trump administration and those who've partnered with it. We will not hesitate to go after the private corporations that are collaborating in all of the lawlessness with Donald Trump. And who exactly drove the big blue wave? We dig into the data. Thanks for waking up with Morning Wire. Stay tuned. We have the news you need to know. ♪♪ Most people don't plan to skip lunch and spend the afternoon snacking, but meetings run long. Errands take longer than expected, and suddenly whatever's within reach becomes the meal. That's where our sponsor Lean from BrickHouse Nutrition comes in. Lean is a doctor-developed, non-prescription weight loss supplement designed to support your efforts in three ways: helping convert stored fat into energy, helping maintain healthy blood sugar, and helping manage appetite and that constant food noise that can make staying on track so difficult. 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So Cabot, the market rallied on Wednesday after the election, but now this. What happened? Yeah, historically speaking, investors love divided government and the gridlock that comes with it. It just makes it less likely the government screws things up. 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. It's 10% down from its recent high a few months ago. 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, "Wall Street badly needs a happy AI story right now." It seems like a lot of worry is centered on Texas right now, correct? Yeah, Texas was obviously the biggest political prize of the night for Democrats. Incoming Democratic Governor Gina Hinojosa not only unseated three-term Republican Governor Greg Abbott, but Democrats took control of the state house. That is big for AI regulation. 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. So future projects as well potentially being put on hold. Texas alone holds about a quarter of all the data center capacity planned in the country. And you can see why a lot of these big tech stocks are indirectly and directly affected by one pause on data centers in one state. Meta, Amazon, Google, Microsoft, SpaceX, Tesla, Nvidia, the list goes on. They've all invested billions of dollars in a product that requires data centers to operate. They might not have access to those data centers in a lot of these planned states. And that is a big reason why their valuations have gone up in recent years. The promise of innovation that again is now in jeopardy because of this political change. And this goes beyond Texas. In 40 of 41 ballot initiatives that we saw in 10 states, voters rejected new data center construction. 40 of 41 of them passed. Ohio alone had more than 20 ballot initiatives on AI data centers, all of which are going to result in further restrictions. In one Ohio town, more than 80% of voters agreed. 80% of voters approved a charter amendment targeting data centers. In another town where Meta is planning a billion dollar data center, residents actually voted to recall their mayor and two city commissioners in large part because they had supported it. So how are AI companies responding to this? They are skittish to say the least. There are some big players in the industry already rethinking where they build these data centers. Speaking at a Wall Street Journal conference this week, Meta president Dina Powell McCormick said starting new data center projects in the U.S., quote, will be very challenging after the election. She went as far as saying that Meta is looking at potentially building in other countries and that every major tech company is likely also asking whether it needs to build outside the U.S. To that point, I spoke with Kenny Polcari, chief market strategist at SlateStone Wealth. He said that a lot of data centers won't have to be built outside the U.S. because you're going to see more Republican states tell them, hey, we'll take the money. Come build in our state. Have a listen. When you're a business owner, you're going to go where your money is treated best. So Texas doesn't want us anymore. There are plenty of red states that would be happy to have job creation and job development and the benefits of having that technology in their backyard. And then there's Elon Musk, who basically is saying you don't have to build them in the U.S. You don't have to build them outside the U.S. Why not build them? Take a guess. In space. You guys knew it. Everything's space with Elon Musk these days. He posted on X after the election, quote, data centers in space looking pretty appealing right now. Anyone else says that? You think it's a joke? Elon Musk says it. Indeed. I think he's serious. Right. And he just said he thinks he can do it in three years, which is crazy. Kevin, thanks for reporting. Absolutely. November is when the calendar starts filling up fast. Thanksgiving plans, holiday travel, family coming into town. And suddenly, all those little things you've been meaning to take care of get pushed into next year, including that doctor's appointment you've been putting off since, well, who knows when. Maybe it's a dental cleaning, an annual checkup, or finding a new doctor after changing insurance. And honestly, the hardest part is sometimes just getting around to making the appointment. That's why this episode is sponsored by ZocDoc. ZocDoc lets you search and compare high-quality in-network doctors. You can read real reviews from real patients, see actual appointment openings, and book a visit right there online. Appointments usually happen within 24 to 72 hours. And you can even find same-day availability. Plus, ZocDoc is completely free to use. 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There's certainly lots to cover there. So, we just talked to Cabot about Democrats' vows to clamp down on data centers. That's not all they're promising to do at all. Who exactly are they threatening to go after and who are the more prominent Democrats saying this? So, the truth is that Democrats have kind of been overplaying their hand when it comes to this issue for basically the past month and indicating that they were going to go after a number of different people within the Trump administration and also outside of it. within the cabinet is Pete Hegseth, who already had a rumbling that Democrats would seek to impeach him over various complaints related to his activity. And I think that you can see some of the familiar faces there, Jamie Raskin in particular, who have been oversight of people in the past. But you also see some new Democrats who are basically broadcasting the fact that they plan to come in and want everyone to lawyer up. I will be particularly interested to see how these Democrats go after some of the president's family members who occupy no official government position. And one of the things that I think is a risk there for Democrats is that some of this stuff is going to seem like a wild goose chase. Not all of the different people that they're going to haul in front of their committee are going to be anything more than fodder for the MSNOW audience. And that's something that I think is a bit of a risk in terms of how they're playing the scenario. We've seen before the way that the backlash around pursuits like this has actually helped the president. And in a situation where he certainly would like to see his approval rating spike among Republicans who perhaps were reluctant to go out and vote for candidates he endorsed in this midterm, I think that this could actually play to the president's benefit in solidifying his partisan support. Now, as we've covered, the Democrats won both the House and the Senate, and they're going to have strong margins. Do you think they're actually going to be able to follow through on these threats in significant ways? Well, I think that they're certainly going to be able to put people in front of committees. The power of oversight is a significant one. We wouldn't have known about Hillary Clinton's servers if not for the power that House oversight had under Republicans. We wouldn't know about Hunter Biden's laptop, really, for the same reasons. And one of the things that I think comes with that is people find things that are perhaps unexpected, that are surprises, or they can root out scandals that people didn't necessarily know about. But at the same time, I would say that this administration has, a lot of loyalty within it. And I don't really see these cabinet members necessarily turning on each other yet. And that's something that is a difference from the first Trump administration, when you had cabinet members basically who hated each other or hated the president even. I don't think that you're seeing that this time around, and we'll see if that holds. What about Raskin's threats to go after, you know, corporations and law firms that worked with the Trump administration? Should we be troubled by threats like that? Absolutely. And I think that one of the things that comes with that is, you know, the idea that this lawfare is not going to just be targeted at individuals whose names you know. We already know that the left hates Elon Musk. We already know that the left hates every member of the Trump cabinet and administration. But what you might not know about is that there are all these other entities that have chosen to work with the administration that don't actually have a direct connection to any of that. They didn't sign up for any of this. They simply have chosen to work with them as, you know, part of their client list or in their own interest. And I think that's a very, very important thing. And for the companies and the law firms that are involved in this, essentially Raskin's threat plays in a very authoritarian manner from my perspective. It's essentially saying, if you work for the other side, we are going to come after you, make your life miserable, and potentially even destroy your business. And some of these firms, they'll probably bend the knee to that. There are people who made the decision in the second term of the Trump administration to work with him personally, who I think, you know, will now see the consequences of that include Capitol Hill Democrats going after you. It doesn't have anything to do with affordability, but they're going to do it anyway. No, and very chilling. And in general, just remarkable how quickly the rhetoric from Democrats has ramped up after Tuesday's wave. Ben, thanks so much for coming on. Great to be with you. Who exactly do Democrats have to thank for their massive success on Tuesday, according to exit polling, some of the same voters who helped put Donald Trump in office. Daily Wire culture reporter Megan Basham, joins us now with some analysis on those voter shifts. So, Megan, everyone is talking about which voters are responsible for this blue tsunami. Even Vice President J.D. Vance was out the other day on X, breaking down Republicans' most significant demographic losses. Where did we see the biggest changes? Yeah, Georgia. So, the biggest headline here was voters under 30. So, two years ago, they were roughly split between Donald Trump and Kamala Harris. But this time, about 7 in 10 went to Democrats. So, young men in particular went from favoring Trump by about 15 points to favoring Democratic House candidates by 33. So, we're talking about a massive 48-point swing there. And a lot of these voters told pollsters that it was the war in Iran that was a big part of why they broke blue. And President Trump did acknowledge that on Wednesday, though he did say that he would do the same thing again. It drove the gasoline up a little bit short term, but at the same time, if I had it to do, again, I'd have to do it again. Because long term, it's the only answer. You can't let Iran have a nuclear weapon. Now, that said, voters under 30 were only about 1 in 10 of the electorate overall. But they did set a trend that we saw with pretty much all other parts of that coalition that elected Trump back in 2024. So, Hispanic voters, only about a third of them backed the Republican in their local house race. And that was down from roughly about 4 in 10 who supported Trump back in 2024. And then only about 1 in 10 Black men supported the Republican House candidate nationally. And that was down from roughly a quarter who backed Trump back in 2024. And if we look at Black support for Democrats overall, it has returned to the high of 80 to 90%. And that really helped Democrats win in states like Georgia that have that large Black population. Right. Now, candidates like James Tallarico, and Adam Hamilton really tried to sell themselves to Christian voters from the left. And we actually got a question from a Spotify listener on this exact topic. How did religious voters, especially the evangelical vote, play into the results on Tuesday? Yeah, John. So, the intersection of Christianity and politics is such a fascinating discussion right now. Because even today, you know, most Democrats and most Americans generally kind of still view the Democratic Party as a party of secularism. And we've seen that in the past. And we heard Joe Rogan saying that just a few days ago. But the left is loony in some, like, things that don't make any sense. And I think it's because the left is secular, like, almost universally. Like, when you think about the left, you generally don't think about, like, Christianity or any religion, really. And yet, as you said, we do have a lot of people pointing to Tallarico and Hamilton and their religious pitch as a reason for Democratic wins. In fact, podcaster Ezra Klein, formerly of The New York Times, he was out early on Wednesday cheering what he called the, quote-unquote, return of the religious left. So, you know, as you said, I don't know that we've seen this kind of messaging since Jimmy Carter. But when we actually look at the exit polling, I'm not sure how real it is. Because if we go back to 2024, white evangelicals were about 24 percent of the electorate then. They were only, quote, 17 percent of this last election. So, you know, it's not clear yet if their numbers were down because fewer of them voted or because we simply saw greater turnout overall. But so far, what we're seeing doesn't necessarily match this messaging on religious voters. Now, one last category, Megan. Non-college-educated adults have been historically in the pocket for President Trump. How did they vote in this election? So, Trump still won those non-college-educated voters. But once again, it mirrored the picture we saw overall in that he didn't win very many of them. So, essentially, Republicans won voters without a college degree by only two points. Meanwhile, Democrats won college graduates by nearly 30 points. So, Republicans barely ahead with one of their most reliable voting blocs, while Democrats really scored an outsized win with theirs. Well, as we've learned in the last few election cycles, neither party, again, can take any group for granted at this point. Megan, thanks for reporting. Yeah, my pleasure. Thanks for waking up with us. And in some exciting news, Confession is hitting theaters on November 11th at 7 p.m. across the country. You can only purchase tickets on dailywire.com. And we're giving out one free ticket to our all-access members, but you have to claim it before the seats are filled, so act fast. To enjoy the show ad-free and join our mission, become a member at dailywire.com. We'll be back this evening with more news you need to know. Father, I used to feel Christ. I cannot feel anything here. They take me out of my bed, and they brought me here, and they tell me nothing. What have I done? Article 58, counter-revolutionary. That is all I know. They have to deal with so many enemies of the state, all of whom claim their innocence, who protest, who cry. There are no answers here, other than the ones they put in your mouth. Your break. Today is your opportunity to demonstrate your. the loyalty to the people. I'd like to know why I'm here. Of course. But you already know, don't you? You must believe in something greater than the party. You will remember your duty. I told you I know nothing. You growl like a feral animal. You stink of failure. 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