Nasdaq plunges into correction territory as midterm results raise fresh questions about AI boom
Investors sold AI-linked stocks as fears grew that Democratic wins could slow data center construction and cloud spending, with the Nasdaq down 10% from its record high.
- 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.
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35 Articles
The stock market index suffers its worst session since June, dragged by the violent fall of chip manufacturers
The worsening of foreign markets in the midst of fears that a Congress in the United States controlled by the Democratic Party, after the victory in the mid-term elections in the United States, led to new regulations in the technology sector was accentuated and already makes the Nasdaq index fall around 4% in New York, while the dollar strengthens and the Treasurys rates sign down, in the midst of the greater search for security. At around 12:35…
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finanzen100.deThe fear of greater regulation of artificial intelligence (AI) on Thursday on the US stock market led to a sell-out of technology assets.
The tech-heavy Nasdaq Composite Index falls more than 5 percent after renewed concerns about the valuations of AI companies. Concerns that AI expansion in the US will be slowed by more democratic policies are cited as an explanation.
Nasdaq plunges into correction territory as midterm results raise fresh questions about AI boom
The tech-heavy Nasdaq Composite plunged by as much as 4.85% Thursday as investors weighed whether Democrats’ gains in the midterm elections could lead to a slowdown in the massive data center buildout.
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