Two main themes: a powerful, sharp rebound!

Today’s market movement is very clear—essentially an intensification of yesterday’s logic. Market attention is focused on two main themes: first, the new-energy sector (photovoltaics, batteries, and energy metals) continues its strong rebound; second, the AI-application sector (advertising, film & television, media), which has been red-hot since the second half of the year, continues to broaden its influence. Let’s start with the strongest performer—the photovoltaic (PV) sector. As analyzed in yesterday’s article, the core driver is the clarification of the U.S. midterm election results. Today’s official data is out: the Democratic Party has flipped control of both the House and the Senate. The Democrats are expected to secure at least 227 seats in the House and no fewer than 54 seats in the Senate. Not only swing states—including Iowa, Maine, North Carolina, and Ohio—have returned to the Democratic camp, but even long-standing Republican strongholds such as Kansas, South Carolina, and Texas have also flipped to the Democrats. In short, this election represents a crushing defeat for Trump and the Republican Party. The implications of this election outcome will dominate U.S. politics for the next two years—and its impact on the stock market will persist for a long time. The biggest consequence is a fundamental shift in the trajectory of U.S. clean-energy policy. The largest overseas risk previously priced into markets has now vanished entirely. In 2022, when Democrats controlled Congress, they passed the Inflation Reduction Act (IRA), allocating hundreds of billions of dollars in sustained subsidies for clean-energy projects—including solar, energy storage, and wind power. But under a potential Trump administration beginning in 2025—coupled with Republican control of the House—the party had signaled plans to prematurely terminate these new-energy subsidies, casting a shadow over global demand for clean-energy products. Now that Democrats have regained control of both chambers, their party leaders have publicly pledged to fully preserve all provisions of the IRA, ensuring long-term extension of tax credits for wind and solar power. Accordingly, following yesterday’s election results, global new-energy stocks surged dramatically: In U.S. markets, First Solar rose 11% in after-hours trading; Sunrun gained 8.7%; Enphase Energy and SolarEdge each briefly soared up to 12%. In South Korea, Hanwha Solutions jumped 10%, while HD Hyundai Heavy Industries Energy Solutions and OCI Holdings both rose over 6%. The A-share PV rally is essentially a resonance of this same sentiment wave. So what about the fundamentals of the PV industry? Have they improved? Judging from third-quarter earnings reports, the PV industry is currently experiencing stark divergence—‘ice and fire’ simultaneously. On one side lies brutal internal competition and price wars: among 108 A-share PV companies, combined net profit attributable to shareholders for the first three quarters was a loss of RMB 3.05 billion—with over half falling into losses. Yet on the other side, leading firms in select niche segments—particularly upstream equipment and auxiliary materials—have already emerged from the downturn. For example, Foster (Foster Electric Co., Ltd.) posted net profits of RMB 1.131 billion for the first three quarters—a 64.5% year-on-year increase. The current PV industry, having endured years of prolonged sluggishness, may appear to outsiders as a morass—but internally, it is undergoing a sweeping restructuring. First, large-scale industry asset consolidation is rapidly accelerating. In October alone, four major asset transactions were finalized in the PV sector: — Tongwei Group acquired Qinghai Lihao for RMB 4.8 billion; — Trina Solar divested its mounting-system assets; — GCL Technology acquired lithium-battery assets in a cross-sector move; — Wuxi Suntech’s former factory assets were auctioned off.

Midterm election results have sparked renewed optimism around federal solar and energy-storage policies.

"Energy affordability was a key issue in this election, reflecting real pressures faced by American households and businesses," said Bolenti. "The solar and energy-storage industry looks forward to partnering with newly elected federal and state leaders to bring more affordable, reliable electricity online—meeting Americans’ desire for energy savings." After campaigning in 2024 with the slogan “Drill, baby, drill,” President Trump stunned the U.S. energy landscape in July 2025 by enacting the ‘Great Beautiful Act,’ which significantly weakened renewable-energy incentives introduced under Biden’s Inflation Reduction Act. Now, with Democrats holding majorities in both chambers of the new Congress, they will have the opportunity to repeal or substantially revise certain energy policies enacted during Trump’s second term—policies more favorable to renewable energy. The solar industry responds According to stock-market data from November 4, this broad-based ripple effect has already triggered a shift across the renewable-energy market. As reported by Fiona Craig of Yahoo Finance, First Solar—one of the largest U.S. solar companies, with a market capitalization of approximately $20 billion—has posted an 8.1% gain following its mid-year earnings release. Craig noted that the pre-market 8.1% surge “far exceeded” gains elsewhere in the broader market ahead of Wednesday’s trading session. In a recent report, Craig stated: "This rebound reflects a fresh wave of optimism surrounding the U.S. solar industry. First Solar attracted investor attention due to its position as the leading domestic manufacturer of thin-film solar modules." She added that the Democratic electoral wave has prompted energy-sector investors to re-evaluate—and even double down on—their positions in solar and energy storage.

Will Democrats’ Midterm Triumph Put Wind Back in Sails of the Renewables Sector?

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Following Democrats' sweep in US midterm elections, renewable energy stocks rallied as political risks decreased. This outcome protects tax credits and offshore wind investments, providing stability for developers like Ørsted amidst supply chain and interest rate challenges.