Nasdaq plunges as midterms unsettle AI investors

U.S. equity investors, JPMorgan analyst Michael Cembalest and Hassett

The Nasdaq fell 6%, or nearly 1,300 points, as U.S. technology shares dropped sharply and a chip selloff intensified. The Nasdaq 100 was set for market-value declines exceeding US$2 trillion; MarketWatch estimated the S&P 500 lost US$2.9 trillion in market capitalization, its largest one-day loss on record. Nikkei Asia reported a 4% decline. Investors assessed how Democratic midterm wins could affect AI companies, data-center expansion, Tesla and SpaceX, which Bloomberg said extended their post-midterm declines. Investors feared newly elected politicians across the United States might seek to slow data-center development, while Wall Street weighed AI's durability and effects on Trump-favored sectors. JPMorgan analyst Michael Cembalest said slower expansion could increase the value of existing AI capacity while pressuring debt-funded neoclouds; MarketWatch said he was looking ahead to 2028. The Nasdaq was described as being in a correction. Hassett said the AI build-out would continue despite the midterm results, as data centers are a crucial part of President Donald Trump's push to win the global artificial intelligence race. TechCrunch reported that voters considered 41 data-center-related ballot measures on Tuesday and that majorities voted for more development restrictions in all but one.

Reported Nov 6, 2026 at 1:54 PM ET

USA

Investors feared Democratic midterm victories could prompt newly elected politicians to slow data-center development and AI infrastructure expansion, while weighing AI's durability, higher interest rates and tighter funding conditions for smaller firms. Cembalest said slower expansion could benefit existing AI capacity while pressuring debt-funded neoclouds. Hassett said the AI build-out would continue because data centers are crucial to Trump's effort to win the global AI race.