Stocks plunge as Dem midterm sweep fuels AI regulatory concerns
Investors sold AI and chip shares as they priced in tougher regulation and slower data center growth after Democrats' sweeping election victories.
- On Thursday, Wall Street plunged as investors reacted to the Democrats' midterm sweep, with the Dow Jones Industrial Average falling more than 1,700 points and the Nasdaq sliding about 5% amid a sharp selloff in technology stocks.
- Technology and chip stocks struggled as investors weighed potential Democratic restrictions on new data center projects, with analyst Jakub Rochlitz noting rising electricity costs turned construction into a political issue during the midterm campaign.
- Nvidia sank about 8% and the Philadelphia Semiconductor Index fell more than 9%, while data center operators IREN, Applied Digital, CoreWeave, and Nebius Group each dropped more than 12% in a broad rout.
- The Nasdaq fell 5.2%, officially entering correction territory by dropping at least 10% from its Oct. 6 record high, as Jed Ellerbroek, portfolio manager at Argent Capital Management, called the move a "capitulation phase."
- Rochlitz added that the market's interpretation is that the infrastructure buildout will become "slower and more expensive," which is rewriting growth expectations across the supply chain as investors de-risk positions.
22 Articles
22 Articles
Stunning losses on Wall Street as S&P 500, Nasdaq see biggest market cap drops ever in wake of midterms
S&P 500 firms shed $2.9 million in market value and Nasdaq companies lost $2.5 trillion – both single-day records – on Thursday as investors panicked over a looming data-center reckoning in the wake of Democrats’ midterm sweep.
Stocks Tank Amid Tech Sell-Off, Reversing Post-Election Rally
A violent selloff of chip and AI stocks sent markets plunging Thursday, erasing all the gains of yesterday’s post-election rally and then some by close. The Dow Jones Industrial Average fell 1,800 points, or about 3.4%. The S&P 500 was down 4%, and the tech-heavy Nasdaq took the worst hit, falling 5.2%. Chip makers Nvidia […]
Wall Street fell sharply on Thursday, after yesterday's strong recovery, with Nasdaq leading the losses, as doubts about the development of artificial intelligence (AI) intensified after the democratic victory in the U.S. mid-term elections.
The New York Stock Exchange broke down on Thursday, stricken by the collapse of AI-related values, investors fearing a slowdown in the deployment of data centres after the overwhelming victory of the Democrats in the US legislative elections. ...
Fears of stricter AI regulation spread in the markets after the Democrats' election victory.
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