Democratic midterm wins trigger global AI stock sell-off
NDTV reported that Wall Street AI-focused shares plunged on after Democratic victories in the U. S. midterm elections sparked concerns that a Democrat-controlled Congress could tighten oversight of data-centre expansion, erasing about $2. 5 trillion in Nasdaq-100 value. Earlier, CNA said AI-related stocks fell sharply as the S&P 500 dropped 4. 4% following the Democratic wins, with investors fearing a regulatory pause on data-centre projects. The Globe and Mail noted that the S&P 500 fell 4. 4% and the Nasdaq 5.
5% driven by losses at major AI companies and worries that a Democrat-controlled Congress could slow AI infrastructure spending. Nine. com. au reported that the midterm results triggered a sell-off that pulled the Nasdaq-100 down more than 6%, wiping out billions in market value. Reuters said shares of SpaceX and Tesla tumbled after the elections amid fears of tighter scrutiny of data-centre projects and a tougher regulatory path for a possible merger. BBC added that SpaceX shares dropped sharply while broader technology and semiconductor stocks declined as investors reacted to potential regulatory scrutiny of data-centre projects and the AI sector. CNBC noted that billionaire donors debated campaign-finance issues after the Democratic win and warned the outcome could hinder the AI sector, and also reported that AI-related shares fell after Democrats secured the Texas gubernatorial race, raising concerns about future data-centre policies.
