Nasdaq plunges into correction territory as midterm results raise fresh questions about AI boom
Investors sold AI-linked stocks as fears grew that new Democratic majorities could slow data-center construction and weaken returns on heavy spending.
- 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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Nasdaq Heads for Correction as AI and Chip Stocks Lead Wall Street Selloff
The Nasdaq Composite was on track to confirm a technical correction on Thursday as semiconductor and artificial intelligence stocks plunged, with investors increasingly concerned that tighter regulation could slow the expansion of AI infrastructure following Democrats' sweeping midterm election victory.
Stock Market Today: Nasdaq Falls as AI Stocks Slide
U.S. stocks reversed sharply on Thursday as investors sold shares tied to artificial intelligence and data center construction, giving back much of the previous session’s post-election rally. The Nasdaq Composite fell nearly 4% in morning trading, while the S&P 500 and Dow Jones Industrial Average also declined. The selloff followed a day when the Dow […]
After the congressional elections, the concern for AI data centers is growing. On Wall Street, there was a massive sell-out of technology shares.
Tech stocks worldwide are taking a heavy hit. For instance, the price of the tech stock exchange Nasdaq on Wall Street fell by five percent an hour after opening. Investors sold off chip stocks in particular, causing the price to drop. Now that Democrats in the US have gained ground, investors are wondering whether the growth of artificial intelligence will proceed more slowly than previously expected and whether, for example, the construction …
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 […]
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