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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224 Articles
Nasdaq's e-markets fell by more than 5% after the trade session, against the background of massive stock sales by investors reviewing artificial intelligence investments. The drop in quotations was triggered by fears of a slowdown in the infrastructure of the data centres after the US interim elections. Nasdaq entered the correction zone, writes Wall Street Journal. Against the backdrop of the sale, the Dow Jones index lost about 1,750 points, a…
Stocks plummet amid Democrat calls to end AI, wiping out trillions
The tech stock market took a major dive on Thursday, following a Democrat landslide during the midterms. So far, $2.8 trillion has been wiped off the board, and the dive could continue amid left-wing calls to shut down the AI industry.A quick glance at the stock market ticker shows all of the major tech giants in the red. AI leaders — like Nvidia, Microsoft, Google, and SpaceSXI — dropped anywhere between 1%-8% in valuation across the board. The…
Nasdaq, the index of many technological values, lost more than 5% in session on Thursday, November 5. The results of the U.S. mid-term elections increase mistrust of most of the values related to artificial intelligence and data centers.
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