The blue wave Democrats have been looking for appears it will happen after all, sending cannabis and solar energy stocks surging while big tech falls.
Multiple news outlets including The Associated Press, NBC News, and CNN have already projected that Democratic challenger Raphael Warnock will win his race and unseat Republican incumbent Kelly Loeffler, becoming Georgia’s first-ever African American Senator.
Fellow Democratic challenger Jon Ossoff appears on track to do the same and defeat Republican incumbent David Perdue. In fact, Ossoff, who currently holds around a 17,000 vote lead, has had his race already called by the Decision Desk HQ and Business Insider.
“The estimated remaining votes are mostly mail ballots; Ossoff has been comfortably outpacing Perdue on these,” The New York Time’s Trip Gabriel wrote this morning.
The projections mean that the Senate will consist of 50 Democrats and 50 Republicans, meaning Vice-President-elect Kamala Harris can cast any tie-breaking vote in the chamber if necessary. Democrats would control not only the Senate and the White House but the U.S. House of Representatives too, helping set the stage for President-elect Joe Biden’s first two years in office.
As a result, both solar and cannabis stocks soared in early trading Wednesday. Shares of cannabis players Canopy Growth (Nasdaq: CGC), Cronos Group (Nasdaq: CRON), and Aurora Cannabis (NYSE: ACB) skyrocketed 16%, 11%, and 13% respectively in early trading Wednesday.
Solar gainers today included SolarEdge (Nasdaq: SEDG), SunPower (Nasdaq: SPWR), Canadian Solar (Nasdaq: CSIQ), and ReneSola (NYSE: SOL). Those stocks rose 14%, 13%, 9%, and 11%. I have recommended buys on ReneSola and Canadian Solar, whose stocks are now up 839% and 80% since.
However, not all stocks rose today. Among the losers, today include tech giants, as investors brace for tighter regulations and higher corporate taxes. Shares of Apple (Nasdaq: AAPL), Microsoft (Nasdaq: MSFT), and Facebook (Nasdaq: FB) slipped 3%, 2%, and 3%.
In morning trading, the Dow Jones gained 103 points, the S&P 500 dropped 1 point, while the Nasdaq Composite lost 95 points.
While we await for the final tally, all signs point to a Dem victory.