Markets Respond to the Georgia Senate Run-Offs

Historic Election Results in Georgia

The votes for the run-off elections in Georgia were finalized yesterday. The Associated Press declared that Democrat Raphael Warnock had won against Republican Kelly Loeffler and Democrat Jon Ossoff won against Republican David Perdue

Following the presidential election when Joe Biden became the first Democrat to win Georgia since Bill Clinton won the state in 1992, both parties poured money into the high-stakes Senate run-offs. Since both Democratic candidates from Georgia won, the Senate will be tied at 50/50 and Vice President-elect Kamala Harris will be the tie breaker in any tied vote. Democrats will also control Congress and the presidency.

Construction, Cannabis, and Green Technology Stocks Surge

Investors across industries are now working to predict what impact these Senate races will have on their businesses. Many expect that the recent blue wave will also lead to a “green wave” with more investment in environmentally conscious initiatives. A number of alternative energy stocks are climbing, such as EV maker Tesla (TSLA) and solar panel manufacturer First Solar (FSLR).

Shares of construction-related companies, like Caterpillar (CAT), Deere (DE), and US Concrete (USCR) also rose yesterday as investors predicted more infrastructure spending. Cannabis-related stocks also jumped as investors considered the possibility that federal marijuana laws may become less strict. These companies included Aphira (APHA), Tilray (TLRY), and Canopy Growth (CGC). In November, a number of states voted to legalize medical and/or recreational marijuana, but changes on a federal level would have a much more significant impact.

Big Tech Stocks Fall

Big Tech stocks dipped yesterday in response to news from Georgia. Apple (AAPL), Amazon (AMZN), Google (GOOGL), and Facebook (FB) were all down in spite of a broader market rally.

Investors seem to believe that a Biden administration and a Democrat-controlled House and Senate could mean more regulation, antitrust probes, and corporate taxes for Big Tech. However, even with both Democrats in Georgia winning, there will still be only a slim democratic majority in the Senate. This could mean that sweeping changes to Big Tech regulations could be difficult to pass. Investors in the technology industry, and all other industries, will be eager to see how this historic election will impact the future of their businesses.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.

TLS 1.2 Encrypted
Equal Housing Lender