AI stocks plunge after US election, driving down markets
News Source
β’Thu, 05 Nov 2026 17:56:17 +0000
π° What Happened
US stock markets fell sharply on Thursday as shares linked to artificial intelligence sold off. The tech-heavy Nasdaq was down 4.8 percent in midday trading, the S&P 500 fell 3.6 percent and the Dow Jones slid 2.8 percent. Chip makers and data centre companies led the losses.
The drop came one day after markets rose, when Democrats won sweeping midterm election victories. Investors had taken those results as a limit on sudden policy changes from the White House.
π The Backstory
Voters also decided 45 local ballot measures about data centres. According to Data Centers on the Ballot, 39 measures to restrict AI-linked building projects passed. Only one, in North Dakota, went the other way.
UBS analysts said building pauses could put about 30 percent of planned US data centre space at risk. AI stocks have driven much of the market's growth in recent years, so they now carry great weight in index funds.
π― Why It Matters
Millions of retirement and savings accounts hold these stocks, so a selloff in AI shares can quickly hit ordinary households.
US stock markets fell sharply on Thursday as shares linked to artificial intelligence sold off. The tech-heavy Nasdaq was down 4.8 percent in midday trading, the S&P 500 fell 3.6 percent and the Dow Jones slid 2.8 percent. Chip makers and data centre companies led the losses.
The drop came one day after markets rose, when Democrats won sweeping midterm election victories. Investors had taken those results as a limit on sudden policy changes from the White House.
Voters also decided 45 local ballot measures about data centres. According to Data Centers on the Ballot, 39 measures to restrict AI-linked building projects passed. Only one, in North Dakota, went the other way.
UBS analysts said building pauses could put about 30 percent of planned US data centre space at risk. AI stocks have driven much of the market's growth in recent years, so they now carry great weight in index funds.
Millions of retirement and savings accounts hold these stocks, so a selloff in AI shares can quickly hit ordinary households.