Wall Street plunges as AI and chip stocks tumble after midterm wins
NDTV reported that U. S. equity indexes fell sharply, with the Nasdaq posting its steepest one-day decline in 19 months after a rally driven by the midterm election results.
Investors sold AI-related shares after Democrats secured the Texas governorship, sparking worries about future data-center regulations. Wealthy donors also voiced concerns that a Democrat-controlled Congress could curb AI development. The sell-off spread to broader technology and semiconductor stocks, pulling down shares of SpaceX, Tesla and other chip makers, as market participants feared tighter scrutiny of data-center projects and a tougher regulatory path for AI infrastructure.