Wall Street Plunges as Democratic Election Sweep Sparks AI Selloff

Wall Street suffered historic losses as election results triggered a massive selloff in AI stocks.

American stock exchanges suffered severe losses after midterm election outcomes sparked investor anxiety over potential federal curbs on artificial intelligence infrastructure. The technology-heavy Nasdaq index tumbled into correction territory, leading a broad market retreat that erased trillions of dollars in value. Analysts noted that the downturn reflects mounting fears over strict regulatory policies and limits on datacenter expansion.

• The dropThe Nasdaq slumped 5.5% in its steepest single-day decline in 18 months.
• Broader lossesThe S&P 500 tumbled 4.4% in its worst session since April 2025.
• Market impactWall Street shed up to $3.2tn in market value as chipmakers and tech giants sold off.
• Underlying catalystInvestors panicked over potential Democratic-led moratoriums or limits on AI datacenters.

What's new · 54m agoTotal market losses across Wall Street widened to an estimated $3.2tn by the end of the trading day alongside a 4.4% drop in the S&P 500.

Written from 10 of 12 outlets — 2 have since joined this story.