Stocks plunge as Dem midterm sweep fuels AI regulatory concerns
Analysts said fears of tighter AI oversight and slower data center buildouts drove the selloff, which erased about $3 trillion in S&P 500 value.
- On Wednesday, President Donald Trump celebrated record stock-market gains, one day after voters handed Democrats control of both chambers of Congress—an outcome he had repeatedly warned would trigger economic disaster.
- The Dow Jones Industrial Average jumped more than 1,500 points Wednesday, its best day since April 2025, as analysts cited expectations of divided government, lower oil prices, and reduced concerns about Iran war escalation.
- In midday trading Thursday, the Nasdaq Composite dipped about 4 percent and fell more than 10 percent below October records. Investors stepped back over concerns that Democratic control could slow semiconductor buildout.
- Trump indicated he would accept election results and work with Democrats, despite warning voters on October 26 that a Democratic victory would produce a "1929-style economic depression." He claimed the Wednesday gains proved his economic success.
- Following the midterm losses, the president distanced himself from the Republican Party's performance, blaming specific candidates and Fox News. The Democratic Party now controls both the House of Representatives and the Senate.
354 Articles
354 Articles
Unhindered by regulation and spoiled with tax breaks, American AI companies became a serious global power factor in recent years. On Tuesday, voters rejected the Trump administration's laissez-faire attitude, leading to significant nervousness on the stock markets.
One day after the euphoria over the US election, the Nasdaq 100, which bundles the hundred largest non-financial assets of the US stock exchange, loses 6.36%. Dietmar Deffner talks about the Democrats' AI agenda and further reasons for selling out.
Technologies are feeling pressure from mid-term results in the US. Nasdaq has the biggest break in the year in the middle and Wall Street is contaging bags in Asia and Europe
Democrats' Midterm Wins Wipe $2.5 TRILLION From Markets — Here's What It Means for Your 401(k)
A brutal tech sell-off erased roughly $2.5 trillion in market value Thursday as investors fled AI stocks following Democrats' midterm gains. Financial advisors warn the biggest risk to retirement savers is panicking — not the drop itself.
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