[Goldman Sachs: Pre-election Hedging Unwinding Drives Market Rebound; Decreased Political Uncertainty Compresses Market Risk Premium] BlockBeats reports that on November 4th, after the US midterm election results were announced and the Democrats regained control of both the Senate and the House of Representatives, US stocks rebounded quickly after a brief decline. Nasdaq 100 futures fell as much as 2.4% on election night before turning positive and rising 0.9%, rebounding approximately 929 points from their intraday low; S&P 500 futures rose about 1%, and Dow Jones futures rose about 700 points. Goldman Sachs and Deutsche Bank analysts believe that this rebound was mainly driven by the unwinding of hedging positions established before the election, following the clarity of the election results. At the same time, decreased political uncertainty also compressed the market risk premium. Goldman Sachs believes that the valuation of the AI infrastructure sector had already contracted significantly, and the decline in short-term volatility may further support the stock market. However, market concerns about AI investment have not disappeared. Texas Governor-elect Gina Hinojosa stated that the freeze on data center construction permits will not be lifted until a more comprehensive regulatory framework is in place, potentially delaying the commissioning of several gigawatts of computing power originally scheduled for 2027 to 2028. Deutsche Bank considers the potential triggering of the US debt ceiling issue in the second quarter of next year a significant policy risk. Whether the Republican Party can complete the debt ceiling adjustment before the new Congress takes office in January next year will affect the uncertainty of subsequent fiscal policy. Analysts believe that this rebound reflects more of a position adjustment and a contraction in risk premiums; data center construction permits, AI infrastructure investment, and debt ceiling negotiations are the key tests the market will face next. [Original Link]