Nasdaq plunges into correction territory as midterm results raise fresh questions about AI boom
- On Thursday, November 5, 2026, the Nasdaq Composite fell into official correction territory, dropping more than 10% below its October 6 record high as a sharp selloff in AI-related stocks erased Wednesday's post-election rally.
- Midterm election victories for Democrats sparked investor fears of tighter artificial intelligence regulation and potential data center construction pauses. Democrats won both chambers of Congress, raising concerns about regulatory scrutiny of the AI industry.
- Semiconductor shares plummeted Thursday, with Advanced Micro Devices tumbling 14.6% and Nvidia falling 8.3%. The sector-wide decline erased an estimated $2 trillion in market value, reflecting investor anxiety over data center profitability.
- State-Level races in Texas, Georgia, and Ohio created immediate uncertainty, as newly elected officials campaigned on pausing data center approvals. UBS analysts estimate 30% of expected 2028 capacity additions are at risk from potential construction delays.
- Investors await the October jobs report on Friday, November 6, 2026, for signals on market direction. Some observers argue the selloff may overstate near-term regulatory risks, citing persistent long-term demand for AI infrastructure capacity.
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318 Articles
Brutal sell-off for AI stocks sends Wall Street reeling
NEW YORK — A brutal sell-off swept through Wall Street Thursday, led by stocks tied to the buildout of AI data centers. The wipeout more than erased the U.S. stock market’s gain from the day before, which was its best in three months.
Several technological indices, including Nasdaq, Nvidia and Tesla, collapsed on Thursday. Investors fear that the arrival of democrats in Congress will slow down the development of data centresSauv-who-can-do on technology: AI values plunge into markets on Thursday fearing that the construction of data centres in the United States, after the victory of the democrats at the "midterms." "Today we are witnessing a total collapse of technological va…
Tech shares collapsed massively the day after the midterms. For example, Nvidia recorded 9.3 percent lower than the previous day.
The collapse in all three indices was the worst since the April 2025 tariff crisis
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