BUZZ - Prison operator stocks drop after Democrats score sweeping victory in congressional elections

November 4 - ** After the Democratic Party scored a sweeping victory in the US midterm elections, shares of US prison operators fell in pre-market trading

** On Tuesday, the Democratic Party (link) took control of both the Senate and the House of Representatives, reversing the Republicans’ traditional dominance for the first time in generations, representing a major setback for President Donald Trump

** Shares of prison operators GEO Group GEO.N and CoreCivic CXW.N dropped by 6.7% and 5% respectively

** Since Trump was elected president two years ago, these two stocks had surged, as his (link) crackdown on illegal immigration increased the demand for detention facilities

** Since Trump’s victory in the November 2024 election, CXW stock has more than doubled, while GEO stock has soared nearly 86%

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