Tech Stocks Plunge as Investors Fear Democratic Congress Will Slow AI Buildout

U.S. stocks fell sharply on Thursday, with the Nasdaq Composite down about 5% in early-afternoon trading, as investors worried that Democratic control of Congress after the midterm elections could slow construction of the data centers that power artificial intelligence. In midday figures, the Nasdaq lost 1,285 points, the S&P 500 fell 300 points, or 3.9%, and the Dow dropped 1,586 points, nearly 3%. Later figures put the Dow down more than 1,800 points, or 3.2%, the Nasdaq down 5.2% and about 10% below a record set last month, and the S&P 500 down 4.1%. Premarket estimates pointed to a $1.8 trillion loss for the Nasdaq 100, and the tech rout was later put at about $2 trillion. Capital Economics' Joe Maher said equities were heading for their worst day since the April 2025 tariff shock. The drop reversed Wednesday's rally, when the Dow gained about 1,500 points.

Right-leaning Just the News leads with the Dow's loss of more than 1,800 points, citing CNBC. It says the drop erased post-midterm gains and attributes it to fears of Democratic anti-AI policy. It offers percentages and the Nasdaq's distance from its record but no analyst voices. Left-leaning NPR and CBS News attribute the selloff to the same fear and the same Wednesday reversal. NPR's headline cites a $2 trillion rout and adds that states, not only Congress, might crack down on AI and data centers. CBS uses the word "crater" and quotes Vital Knowledge's Adam Crisafulli, Capital Economics' Joe Maher and E*Trade's Chris Larkin. Its Dow figure is smaller, which may reflect timing. Reuters, in a premarket report, matches the left's focus on the $1.8 trillion Nasdaq 100 loss.