GRO MONEY NEWS - ⚖️ WASHINGTON GETS GRIDLOCK. WALL STREET GETS A NEGOTIATING TABLE.

📈 Democrats have won both chambers of Congress. Wednesday, the Dow surged 3%. The market is considering whether divided government could reduce sweeping legislative changes and improve economic predictability.

🏗️ But data centers face a new test. Political opposition to development is growing, especially around electricity costs, water and permitting.

💰 On October 28, EdgeCore closed a $521 million securitization backed by its stabilized, fully leased 36 MW Silicon Valley data center.

The lesson? Power, tenancy and cash flow beat speculative megawatts.

Institutional capital can still get deals done. The projects must be bankable.

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~ Teresa Grobecker

Duration: 14m
Broadcast on: 05 Nov 2026
Audio Format: other

grow money news. Thursday, November 5th, 2026. Washington gets gridlock. Wall Street gets a negotiating table. Washington has just discovered a concept that capital markets understand rather well. Nobody gets to sign the entire deal without a counterparty. The November midterms have handed Democrats control of both chambers of Congress, ending two years of unified Republican control. And while Washington prepares for another season of political theater, the more interesting question is whether this new balance of power could make the next two years more predictable for businesses, investors, and infrastructure developers. Today's Grow Money News is brought to you by Grow Group, where we have access to billions in capital for qualified infrastructure and development projects, including data centers, power, solar, and ground-up construction, subject to project underwriting, and financing approval. The central investment thesis today is that divided government may be exactly the kind of restraint that capital markets have been looking for. The White House retains executive authority, including considerable discretion in foreign policy, trade, and agency administration. But beginning with the new Congress in January, advancing major legislation, appropriations, and sweeping fiscal changes will require negotiations with political opponents. That's not the elimination of government risk. It is the introduction of a more formidable negotiating counterparty. For institutional capital, the prospect of fewer abrupt legislative changes may be worth more than another round of political promises. And Wall Street certainly appeared willing to consider that argument on Wednesday. The Dow Jones industrial average surged more than 1,500 points, gaining 3 percent and closing above 53,300. The S&P 500 rose 1.6 percent, while the NASDAQ gained 1.4 percent. But the most revealing move may have been in the bond and energy markets. The 10-year treasury yield fell from 4.95 percent late Tuesday to approximately 4.88 percent, while Brent crude plunged 8.7 percent to $94.62 a barrel. That combination deserves attention. A decline in oil prices can reduce inflation expectations, relieve pressure on transportation and construction costs, and support fixed income markets. Lower treasury yields can improve the economics of financing long-lived assets, although borrowing rates also depend on credit spreads, leverage, and perceived project risk. Investors appear to be assessing whether divided government could constrain additional deficit-funded initiatives and create pressure for a change in the direction of the war with Iran. Neither outcome is guaranteed, but both are economically material. The connection to the Federal Reserve is equally important. Lower energy prices may improve the inflation outlook, but they do not automatically produce a Federal Reserve rate cut. Inflation remains sufficiently elevated that markets are still considering further tightening. On Thursday, investors will examine weekly unemployment claims and third-quarter productivity data, followed by Friday's October employment report. A political reset can change the risk premium embedded in long-term securities, but the Federal Reserve still has to contend with wages, employment, and inflation. Fiscal restraint and easier monetary policy are not the same thing. In Asia, the response is revealing a second story beneath the broad American equity rally. Early Thursday trading showed weakness in markets and companies closely exposed to artificial intelligence. South Korea's cost fee was down approximately 3.5% during late-morning trading, while Samsung Electronics and SK Heinrichs fell more sharply. Japan's Nikke also declined as semiconductor equipment companies faced selling pressure. Meanwhile, markets such as Hong Kong and Australia were higher. Capital is not rejecting the entire economy. It is beginning to separate the infrastructure investment thesis from the valuation and regulatory risks attached to parts of the AI trade. Now we come to the most important question for infrastructure investors. What happens to data centers? At the federal level, divided government could reduce the probability of sweeping unilateral legislative changes, but data center development is not primarily controlled by congressional party arithmetic. It is controlled by whether a developer can obtain land entitlements, documented electricity capacity, utility interconnection, water access, construction approvals, and support from the community paying for the surrounding infrastructure.

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