Greetings N2K reader!

We were up late last night awaiting the results of the off-year elections in New York, New Jersey, Virginia, and California¹ . So let’s skip the preamble and get to: the news you need to know!

—Matt Davis, Need2Know Chedditor

News You Need2Know

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What last night’s election results mean for markets, the shutdown, tariffs, and you, dear reader

Voters across the country sent a decisive economic message in last night’s off-year elections, focusing overwhelmingly on the theme of affordability. Americans grappling with anxieties about high bills, inflation, and the cost of living dictated the terms of the gubernatorial races in New Jersey and Virginia, as well as the mayoral race in New York.

Dr. Ashley Konig, the director of the Eagleton Center for Public Interest Polling at Rutgers University, told ABC News that "the theme of affordability is pretty widespread across these elections." In New Jersey, Konig defined “affordability” to ABC News, "it's really a focus on what is happening to people's wallets." This frustration translated into support for candidates promising relief, such as Zohran Mamdani, who won the New York City mayoral race — with the highest turnout in decades — after vowing to freeze the rent for rent-stabilized apartments. Here’s my favorite bit of coverage of that race from the New York Times last night:

A key driver of this voter angst, particularly relevant to energy markets, is soaring utility costs linked to data center proliferation and the AI boom. Virginia State Del. Shelly Simonds, a Democrat, told NBC News that “voters are mad as hell about energy prices increasing” and warned that "anybody who ignores these issues does so at their peril."

These data centers, which power companies like OpenAI and run the servers for AI algorithms on major platforms like Netflix $NFLX ( ▼ 0.65% ) and Amazon $AMZN ( ▼ 1.84% ) , demand an outsize amount of electricity. Daniel Lockwood, a spokesman for PJM Interconnection, which runs grids in 13 states, told NBC News that “demand for electricity is growing... driven by data centers that power the digital economy and the development of artificial intelligence.” In response, Mikie Sherrill, a Democrat who has since been elected governor of New Jersey, pledged to declare a state of emergency to freeze utility rate hikes.

Similarly, in Virginia, newly elected Democratic governor Abigail Spanberger’s platform called for making sure data centers pay their "fair share" of new electricity generation and transmission costs. New Jersey state assemblywoman Andrea Katz, a Democrat, told NBC News that data centers "just need to contribute to the community in the same way that all the other businesses do."

Imagine that.

Meanwhile, the massive influx of big money into these state elections — often from energy interests and special donors — underscores the high stakes for regulatory policies. The decisive focus on cost of living, as veteran Democratic operative Jesse Ferguson told PBS NewsHour, shows that candidates must be “able to connect the pain from Washington to the pockets in Virginia."

As for tariffs and the government shutdown, the pressure on President Donald Trump is higher as a result of the election results. Many voters in Virginia happen to have been furloughed federal employees, for example:

Texas Governor Greg Abbott threatened to impose a “100% tariff” on anyone moving to Texas from New York following Mamdani’s victory, but it’s unclear literally what that means or whether any New Yorker would ever choose to make the move. If you’ve done it, email me and tell me why? (If it’s for the breakfast tacos, I understand.)

Not perhaps too suprisingly-ish, President Trump reprised unfounded claims about election interference yesterday. He remains adamant about defending his tariffs, which face scrutiny from the Supreme Court today. “If we win, we will be the Richest, Most Secure Country anywhere in the World, BY FAR,” Trump wrote on social media. However, opponents, including some economists, point out that these tariffs have led to higher costs for American consumers.

Meanwhile, the government shutdown — now nearing historic lengths — continues to dominate headlines. Amid polling that shows increasing public dissatisfaction, presidential historian Tevi Troy noted, “It’s an odd confluence to have these three potential checks on presidential power — legislative, judicial, and electoral — all come in one week.”

An odd confluence, indeed.

Song of the day: Motörhead & The Damned: ‘Neat Neat Neat’

It may be that you’re in the mood to blast some strong punk music out of your computer this morning. If so, this newly released collaboration between Motörhead and English punk band The Damned, who originally recorded the song in 1977, and recorded this with the late Lemmy and his band in 2002, might be right up your street.

The song is included on the tribute album “Killed By Deaf: A Punk Tribute to Motörhead,” which celebrates Motörhead's 5öth anniversary and also features other nötable punk bands.