Democrats’ sweeping midterm victory sent stocks sharply higher Wednesday, but the rally exposed major sector divisions. Big Tech, clean energy and healthcare gained, while AI infrastructure, defense contractors and Elon Musk-linked companies faced selling pressure.
Uber shares rose about 7% after stronger third-quarter earnings and robust delivery growth offset slowing ride-hailing revenue, driver shortages, and higher fuel costs. Investors also weighed the company’s expanding autonomous vehicle plans.
Datadog shares plunged approximately 14% after its fourth-quarter revenue outlook signaled slowing growth and weaker margins. Strong third-quarter earnings and expanding AI adoption were overshadowed by reduced usage from its largest customer.
Duolingo shares surged more than 30% after daily active user growth accelerated and quarterly revenue exceeded expectations. Stronger engagement, improving bookings, and an upbeat fourth-quarter outlook helped offset weaker earnings and margin pressure.