Democrats projected to win control of U.S. House and Senate in 2026 midterms

The Democratic Party is projected to win both chambers of Congress in the 2026 U.S. midterm elections, according to The Associated Press. The party is also projected to win control of the Senate and is on track to take control of the House of Representatives, according to CBS News.

Key State and Gubernatorial Results

In Texas, Democrat Gina Hinojosa has defeated three-term Republican Governor Greg Abbott. Hinojosa, a five-term state representative, becomes the state's first Latina governor. During her campaign, Hinojosa focused on affordability and opposition to the expansion of large-scale data centers. Abbott, who had sought an unprecedented fourth term, conceded the race to supporters.

In California, Democrat Xavier Becerra defeated Republican Steve Hilton for governor by a wide margin. Other Democratic candidates won all statewide offices except for the Insurance Commissioner race, which features two Democrats in a close contest.

In the U.S. Senate, the BBC's partner CBS News reported that Democrats have taken control of the Senate, with unexpected wins in states including South Carolina and Kansas. Other states projected to turn blue include North Carolina, Texas, Iowa, Ohio, and Maine.

Market Reactions and Economic Implications

Stock futures dropped following projections of a Democratic majority in Congress. Investors expressed concern that a "blue wave" could lead to increased restrictions on data center development and more scrutiny on industries such as banking.

Specific market movements included:

• Technology: Shares of Microsoft, Amazon, and Nvidia traded lower. In Asia, semiconductor stocks tumbled, including Softbank Group, Disco, Advantest, Renesas Electronics, Tokyo Electron, SK Hynix, Samsung Electronics, Seoul Semiconductor, and TSMC.
• Energy: Renewable and solar stocks, such as the Invesco Solar ETF, traded higher on speculation that a Democratic majority might halt certain policies previously taken by President Donald Trump.
• Other: SpaceX shares fell more than 6% in overnight trading, and Trump Media & Technology shares declined more than 7%.

Why it matters

A Democratic majority in Congress could shift federal policy regarding data center construction, tax breaks, and industry regulation. In Texas, the gubernatorial result is particularly significant for the AI trade, as the state represents approximately 27% of U.S. data center gigawatts, according to estimates from Wells Fargo.

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Sources

• nypost.com: A blue wave election — but it's not all bad news for GOP
• cnbc.com: Stock market today: Live updates
• theguardian.com: Democrat Gina Hinojosa defeats Texas governor Greg Abbott in stunning upset | Texas | The Guardian
• bbc.com: Story of US 2026 midterm elections in maps and charts

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.