concerns regarding the sustainability of the artificial intelligence boom.
The tech-heavy Nasdaq 100 index fell 6.3%, wiping out $2.3 trillion in market value as investors paused to reassess the risks facing the billions of dollars invested in the AI sector.
The S&P 500 dropped 4.4%, shedding $2.8 trillion from its total value. Both indexes experienced their most significant single-day decline since April 2025, when President Donald Trump’s global tariffs sent markets into a tailspin.
The broader Nasdaq Composite, which includes a wider range of stocks beyond just the tech sector, fell more than 5.5% and entered “correction” territory, defined as a decline of at least 10%.
Markets had generally anticipated that Democrats would secure majorities in Congress. However, investors were caught off guard by the magnitude of the victories and the upset wins of candidates such as Gov.-elect Gina Hinojosa in Texas, which serves as the nation’s largest data center market.
Democrats remain hopeful about securing Senate seats in Mississippi and Alaska. Regardless, hundreds of candidates who campaigned on promises to restrict AI data centers have already been elected, fueling fears of stricter regulations on an industry that currently serves as the primary engine of U.S. economic growth.
Trump commented on the market downturn Thursday, attributing the slide to the Democrats.
“The Stock Market suffered one of the Worst Days in History based on the results of the Election. Such a sad thing to watch!” Trump said.
Dow components Cisco and Caterpillar, both of which are major suppliers for AI data centers, also saw their shares fall by approximately 6%.
