Nasdaq plunges into correction territory as midterm results raise fresh questions about AI boom
- On Thursday, United States stock indexes plummeted as the Dow dropped more than 1,000 points and the Nasdaq plunged 5%, entering correction territory down 13% from its recent high.
- Democrats' sweeping victories on Tuesday sparked concerns that newly elected officials will tighten regulations for data centers and AI development, cooling investor optimism that had fueled a rally just one day earlier.
- Analysts at Jefferies called the Democratic Sweep a "Worst-Case Near-Term Scenario" for the AI trade, while Harvard economist Jason Furman noted data center construction spending soared 80% in September, underscoring the sector's economic importance.
- Meta President Dina Powell McCormick said on Wednesday that new data center build-outs in the United States will be "very challenging," citing regulatory hurdles that weigh on infrastructure firms like CoreWeave and Nvidia.
- Markets remain volatile as investors navigate Big Tech earnings and economic data releases, with all eyes on the October jobs report arriving Friday, which is expected to shape the Fed's path for future rate hikes.
58 Articles
58 Articles
Tech stocks face $1.8 trillion wipeout as Democratic win fuels AI delay fears
According to a report from Yahoo Finance, the Nasdaq 100 was poised Thursday to shed a staggering $1.8 trillion in market value as investors reacted to a sweeping Democratic midterm victory they fear could slow the breakneck expansion of artificial intelligence infrastructure. Semiconductor and neocloud stocks that had powered recent market gains plunged for a […]
Stock Market Takes Stunning Plunge As Dems Sweep Midterms
The stock market’s post-election celebration hit a wall Thursday as a brutal technology sell-off sent the Dow tumbling more than 1,100 points and pushed the Nasdaq into correction territory. Investors dumped artificial intelligence stocks amid fears that Democrats’ victories in Congress and key governor’s races could bring tighter restrictions on the industry’s massive expansion. The […]
US stocks tumble as semiconductor index sinks 11%; Nvidia, AMD lead tech sell-off
Wall Street tumbled on Thursday as a sharp sell-off in AI and semiconductor stocks erased the previous session's post-election gains. The Nasdaq Composite plunged 5%, the S&P 500 fell 3.3% and the Dow dropped more than 1,200 points, while the Philadelphia Semiconductor Index sank 11%. Oil prices also rebounded amid uncertainty over a possible US-Iran deal.
Nasdaq plunges into correction territory as Dem wins threaten data centers — and AI giants rush to stem fallout
The Nasdaq plunged 5.1% Thursday, entering into correction territory, as investors and industry leaders braced for a data-center reckoning in the wake of Democrats' midterms sweep.
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