US tech shares fall sharply as investors bet on AI slowdown after Democrats’ election triumph
News Source
•Thu, 05 Nov 2026 18:44:25 GMT
📰 What Happened
US technology shares fell sharply on Thursday, with the Nasdaq heading for its worst day in 18 months. Investors sold AI-related stocks after Democrats won sweeping midterm election victories. The tech-heavy index was down 4.8 percent at midday, the S&P 500 fell 3.6 percent and the Dow dropped 2.8 percent.
Chip makers and data centre companies led the losses. The selloff came a day after markets had risen on relief at the election result.
🔍 The Backstory
Markets first welcomed the result, which was seen as a limit on sudden policy changes from the White House. Attention then turned to 45 local votes on data centres. Voters approved restrictions in 39 of them, and only North Dakota rejected limits.
UBS analysts said pausing construction could put about 30 percent of planned US data centre capacity at risk. AI shares have driven most market growth, so they now carry heavy weight in pension and index funds.
🎯 Why It Matters
A sharp tech selloff can hit pension funds and savings accounts, and it may slow the building of AI infrastructure.
US technology shares fell sharply on Thursday, with the Nasdaq heading for its worst day in 18 months. Investors sold AI-related stocks after Democrats won sweeping midterm election victories. The tech-heavy index was down 4.8 percent at midday, the S&P 500 fell 3.6 percent and the Dow dropped 2.8 percent.
Chip makers and data centre companies led the losses. The selloff came a day after markets had risen on relief at the election result.
Markets first welcomed the result, which was seen as a limit on sudden policy changes from the White House. Attention then turned to 45 local votes on data centres. Voters approved restrictions in 39 of them, and only North Dakota rejected limits.
UBS analysts said pausing construction could put about 30 percent of planned US data centre capacity at risk. AI shares have driven most market growth, so they now carry heavy weight in pension and index funds.
A sharp tech selloff can hit pension funds and savings accounts, and it may slow the building of AI infrastructure.