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Nasdaq plunges into correction territory as midterm results raise fresh questions about AI boom
- On Thursday, November 5, the Nasdaq Composite plunged into correction territory, falling over 10% from its October 6 peak as investors sold stocks tied to artificial intelligence and data center infrastructure following the U.S. midterm elections.
- Democratic victories in the recent midterm elections fueled investor fears of tighter AI regulation and potential data center construction pauses. Political shifts in Texas and Georgia, accounting for roughly 40% of planned U.S. data center capacity, created headwinds for an industry reliant on rapid facility expansion.
- Heavyweights like Nvidia and Advanced Micro Devices tumbled as a tech-led rout erased roughly $1.8 trillion in market value. Goldman Sachs reported that large hedge funds liquidated hyperscaler positions to manage exposure during the selloff.
- While marketing platform AppLovin reported strong profits, the broader sell-off deepened as investors questioned the sustainability of massive AI spending. JPMorgan analysts noted the boom may become costlier and more consolidated in coming years.
- Investors await the October employment report, scheduled for release Friday, November 6, to gauge economic resilience amid the selloff. The data may determine whether AI-related selling stabilizes or if broader concerns extend pressure on markets in coming weeks.
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Le Journal de MontrealReposted by 
Le Journal de Quebec
Le Journal de QuebecThese days, it can be difficult to keep your cool by looking at your placements.
·Montreal, Canada
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Nasdaq fell by 6.4% in the middle of the session this Thursday. How to explain it? Quarterly figures for the technology sector have remained good, but do not...
·Brussels, Belgium
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The latest tech crash has seriously shaken the euphoria surrounding artificial intelligence for the first time. At the same time, the large corporations continue to invest in billions of euros. Now it becomes clear who can carry this bet – and in which shares the risks are growing dangerously.
·Berlin, Germany
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Total News Sources677
Leaning Left79Leaning Right104Center168Last UpdatedBias Distribution48% Center
Bias Distribution
- 48% of the sources are Center
48% Center
L 22%
C 48%
R 30%
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