AI stocks hammered as midterm results raise fears of an AI crackdown
Written by AI from cnbc.com's report. Not checked by a person.
Tech shares plunged after the midterms, as investors feared a Democratic Congress would slow AI and data-center growth. The Nasdaq fell more than 5% in a day, erasing about $2 trillion or more.
US and global tech stocks sold off sharply after the midterm elections. On Thursday, November 5, the Nasdaq Composite fell more than 5%, entering correction territory about 12% below the record set a month earlier. Reports from CNN, NPR, CNBC and NBC put the lost market value between roughly $1 trillion and $2.5 trillion. Investors feared that a Democratic Congress, and states across the country, would crack down on AI and data centers and slow the buildout. Chipmakers and data-center suppliers led the decline. CoreWeave fell about 10% and Nebius about 15%. Caterpillar dropped 5% and GE Vernova more than 7% on worries that slower data-center construction would hurt demand. Losses continued in Europe and Asia on Friday, with Wall Street futures pointing to a modest rebound. Some strategists called the move a knee-jerk reaction rather than a lasting signal, while others warned the buildout faces a long fight. Doubts about whether heavy AI infrastructure spending will pay off also contributed.
