Wall Street has picked its winners from the Democratic sweep of the United States midterm elections, with solar, airline and healthcare stocks drawing analyst support while the wider market steadied after a bruising week for technology shares.

Democrats flipped seven Senate seats and more than 40 House seats on Tuesday, giving the party control of both chambers of Congress. The result has prompted analysts to reassess which sectors stand to gain from the change in Washington, even as the new Congress does not take its seats until January 2027.

Solar shares in focus

Renewable energy firms are among the clearest beneficiaries identified by analysts. William Blair singled out First Solar, upgrading the solar panel maker to outperform from market perform. The firm argued that Democratic control should unlock support for utility-scale solar procurement and siting at state level, and that the Bipartisan American Affordability and Jobs Act, which aims to speed up federal permits for solar projects and expand grid development, is now more likely to become law.

Shares of First Solar were up 15% over the past week, although the stock remains down 23% so far in 2026. The solar exchange-traded fund TAN rose 5.65% at the close on 4 November, the day after the election, when the Dow Jones Industrial Average closed 3.03% higher at 53,356.12.

Hospitals and health insurers climb

Healthcare stocks have also moved sharply. Hospital operators HCA Healthcare and Universal Health Services have risen 4.6% and 11.1% respectively since the start of the week, according to Wolfe Research. On the day after the election, Centene gained 12.64% and HCA Healthcare rose 10.34%.

Analysts link the move to the Democrats' stated agenda for their first 100 hours in the House, which presumptive Speaker Hakeem Jeffries has said will include repealing Medicaid cuts and restoring the expanded Affordable Care Act premium tax credits that expired at the end of 2025. Wolfe Research said the potential tailwinds could be greatest for hospitals, while cautioning that it could take quite a while for them to materialise. Any such law would still need the President's signature.

Airlines and drone makers

Airline stocks could also benefit, according to Citigroup. The bank argued that a sharp rise in consumer sentiment among Democrats after the election could lift discretionary spending, including air travel. The US Global Jets ETF, which invests in American and international airlines, has risen about 2% since Election Day, with Delta Air Lines up 8.8% and United Airlines up 8.2% over the past week.

Drone makers are another group named by analysts. William Blair said drone battery manufacturer Amprius Technologies could gain from increased support for Ukraine, noting that roughly half of the company's revenue in 2026 has been tied directly to Ukraine or to allies supporting the effort. Analyst Mark Shooter said the midterm outcome could reverse the American position from decreasing to increasing Ukraine funding, which would support Amprius revenues in 2027.

A volatile week overall

The sector moves came against a volatile backdrop. The S&P 500 finished the week down 2.7%, the Nasdaq Composite fell 3.4% and the Dow slipped 0.9%, as doubts over artificial intelligence spending and the election result unsettled technology shares. Barclays also pointed to specialty real estate investment trusts such as Equinix, Iron Mountain and Digital Realty Trust as possible beneficiaries, arguing that voter opposition to data centre development could slow construction and strengthen pricing power for existing sites.

Investors will now watch whether the rotation holds as the new Congress prepares to take office in January, and whether the policy promises behind the rally turn into legislation that can pass both chambers and win presidential approval.