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Today we’ll look at the economic fallout of last night’s election. 
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It was the economy, stupid.

Democrats will retake the House and Senate after a generational string of wins last night, flipping seats in several states President Donald Trump won by double digits. Votes are still being counted, but Trump has said he’ll accept the results, which he blamed on candidates he picked and affordability concerns he had dismissed as a “hoax.”

There will be time for political postgaming, but today we’re looking at the economic fallout: Market reaction, data centers, interest rates and more. My colleague Caitlin Tan kicks us off with a story you probably didn’t see on cable news last night: Property taxes. — Tony Wagner, newsletter editor
Atmosphere at a Florida polling place.
Giorgio Viera/AFP via Getty Images
Property taxes were on the ballot, and voters were all over the place
Florida approved a tax exemption for properties up to $250,000, while Wyoming voted down a property tax cut to maintain public services.
Wyoming is considered by many the most conservative state in the country, and generally prefers lower taxes. But last night, the Cowboy State voted overwhelmingly against a 50% cut in property taxes.

“I think we all knew it was going to be close. I thought it might be a little closer than this,” said Hank Hoversland, executive director of the Wyoming Taxpayers Association.

He thinks the vote was in response to a previous property tax cut that took a toll on public services.

“We've seen closures of libraries on certain days, slower service in emergency services like fire or inability to maintain their equipment,” he said.

Those cuts could’ve gotten much worse had the latest tax cut passed. That’s what happened in Florida last night.

“I don't think I envy Florida in what they're going to be experiencing,” Hoversland said.

Florida voters approved a tax exemption on as much as $250,000 of a home’s value. For Florida's county and city budgets, that translates to billions in revenue lost annually.

There are few ways policymakers can respond.
READ MORE


 
News you should know
Let’s do the numbers
  • The stock market tends to perform well after elections, and this year’s midterms gave Wall Street its best day in months. The S&P 500 closed up 1.6%, the Dow rallied 3% and the Nasdaq composite rose 1.4%.

  • CVS was down 12.5% today after the company announced plans to split its retail business into a separate company from its other healthcare ventures. “Deconglomeration” has boosted stock prices for other big companies in recent years.

  • McDonald’s shares rose 6.5% after an earnings beat. The chain said it plans to prop up falling sales with a renewed focus on, what else, affordability. 
More on yesterday’s election
  • A big factor lifting stocks today: Oil prices. Brent crude hit a two-month low after Vice President JD Vance blamed the war in Iran for his party’s blowout last night.

  • Voters rejected data centers in at least 38 local races yesterday, and polling data tells us antipathy for the projects is national. Is there a way to build them that people won’t hate? What about launching them into space?

  • Democratic control of Congress could help preserve the Federal Reserve’s political independence and lower bond yields, experts told us. That should in turn lower interest rates on mortgages and car loans.

  • A record 29 million viewers tuned in to watch data analyst Steve Kornacki do the numbers on NBC’s “Kornacki Cam,” the network said today, even though he “only” livestreamed for 10 hours straight.
Voters in a large polling place
Joe Readle/Getty Images
QUOTE OF THE DAY
“I think the first thing you want to do is recognize that most people don't want to talk about politics at work.”
— Adam Grant, organizational psychologist at the University of Pennsylvania's Wharton School
One survey found 7 in 10 employees want to keep politics out of the workplace, and political tension can make businesses less productive. Still, Grant cautioned that banning political discussion altogether can seriously backfire. Instead, he advises workplaces to get comfortable disagreeing while recognizing their colleagues’ feelings — if not their views on immigration.
HEAR MORE


A candid photo of Nathan Johnson speaking in a press scrum.
Incoming Texas Attorney General Nathan Johnson, second from right. (Alex Wong/Getty Images)
Final note
From "DBZ" to state AG
Life is long; careers often take twists and turns you don’t expect.
 
Nathan Johnson is on roughly his fourth act. The Texas state senator rode last night’s blue wave to an upset in the state attorney general race , but along the way he also composed the score for dozens of episodes of “Dragon Ball Z,” plus several movies in the anime series.
 
Johnson had paused his legal career in the 2000s, and he was living off his wife’s income while making a go at music composition. He had nearly given up before a chance encounter with a Texas-based animation exec got him a gig working on English dubs of “DBZ”
 
“I had never seen Dragon Ball,” Johnson told the blog The Dao of Dragon Ball in 2012. “Never seen an episode of anime in my life.” 
 
He figured it out. Here’s a small sample of some anime scoring from the future top lawyer in Texas. And hey, why not revisit “Marketplace Morning Report” host Kimberly Adams’ list of anime recs for econ nerds?
READ THE LIST
 
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