AI stocks plunge after US election, driving down markets

What the report says

US stocks fell sharply on Thursday, with technology shares and AI-related companies leading the decline after Democrats scored sweeping wins in the midterm elections, according to Al Jazeera. The Nasdaq, which is heavily weighted toward tech, dropped the most, while the S&P 500 and Dow also moved lower in midday trading.

Al Jazeera reported that investors were reassessing the outlook for artificial intelligence infrastructure after voters backed restrictions on most of 45 data-centre ballot initiatives around the country. The outlet said analysts and portfolio managers viewed the results as a sign of possible political resistance to AI expansion, especially at state and local levels, even after markets had rallied the previous day on reduced election uncertainty.

Shares tied to AI and chips were among the hardest hit. CoreWeave and Nebius Group slid, while Nvidia, Micron, Intel and Dell also fell. Larger tech names including Amazon and Meta were lower as well. Tesla and SpaceX, both linked to Elon Musk, also declined after his costly support for Republican-leaning candidates in Texas races that Democrats ultimately won.

The report added that gold rose as investors sought safer assets, and that European markets were also pressured by the selloff in technology shares. In broader terms, the move reflected a shift away from high-growth tech stocks as traders weighed how election results could affect regulation and investment in AI-related projects.