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Tech stocks plunge as Democrats' midterm wins threaten AI expansion
US tech stocks fell sharply on Thursday amid fears that Democratic victories in the midterms will lead to tighter regulation of data centres and AI infrastructure.
The Nasdaq dropped more than 5 per cent on Thursday, entering correction territory, with the S&P 500 falling 3.2 to 3.6 per cent and the Dow Jones declining 2.1 to 3.44 per cent. The sell-off followed Democrats' sweeping wins in Tuesday's midterm elections. Investors fear the new Congress and Democratic-controlled states will slow data centre construction and impose tougher AI regulation. Chip stocks led the decline, with Nvidia falling 9 to 10 per cent and Broadcom dropping 9 per cent. Data centre operators and AI-focused companies also fell sharply. The 'Magnificent 7' tech stocks lost nearly $1.04 trillion combined. Market analysts attributed the reversal to concerns that Democrats campaigned against data centres, with voters rejecting data centre ballot measures in at least 46 of 50 referendums nationwide.
From 10 outlets:
NPR›
Summary written by AI from these reports. See news.today/ai
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