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Daily Read: AI

US Midterms Trigger AI‑Fears, Tech Stocks Plunge

The Nasdaq composite fell more than 5.5%, wiping roughly $2.5 trillion in market value as investors reacted to the Democratic sweep in the U.S. midterm elections. The result was a sharp sell‑off in companies tied to artificial‑intelligence infrastructure, with Nvidia shares sliding over 9% and other chipmakers such as AMD, Micron and Intel falling 10–17%. Democrats campaigned on slowing the expansion of data centres, and several ballot measures across the country aimed to restrict new AI‑related construction. The election gave Democrats control of both houses of Congress, prompting statements from leaders like Senator Bernie Sanders calling for a national data‑centre moratorium. The S&P 500 and Dow Jones Industrial Average also fell 4.4% and 3.4% respectively, pushing the Nasdaq into what analysts call correction territory. Tech executives, including OpenAI’s Greg Brockman and Meta’s Dina Powell McCormick, warned that the backlash could force the industry to engage more closely with local communities. The market’s reaction has raised concerns that the AI sector may be overvalued and could face a significant correction in the near term.

· BBC News

The essential points

  1. 01Nasdaq drops 5.5%, wiping $2.5 trillion in market value
  2. 02Democrats win midterms, push for data‑centre moratoriums
  3. 03Nvidia shares fall 9%, losing over $400 bn in value
  4. 04AI‑fears trigger market correction, investors worry about a bubble
The full brief

The Nasdaq composite fell more than 5. 5%, wiping roughly $2. 5 trillion in market value as investors reacted to the Democratic sweep in the U. S. midterm elections.

The result was a sharp sell‑off in companies tied to artificial‑intelligence infrastructure, with Nvidia shares sliding over 9% and other chipmakers such as AMD, Micron and Intel falling 10–17%. Democrats campaigned on slowing the expansion of data centres, and several ballot measures across the country aimed to restrict new AI‑related construction. The election gave Democrats control of both houses of Congress, prompting statements from leaders like Senator Bernie Sanders calling for a national data‑centre moratorium. The S&P 500 and Dow Jones Industrial Average also fell 4. 4% and 3.

4% respectively, pushing the Nasdaq into what analysts call correction territory. Tech executives, including OpenAI’s Greg Brockman and Meta’s Dina Powell McCormick, warned that the backlash could force the industry to engage more closely with local communities. The market’s reaction has raised concerns that the AI sector may be overvalued and could face a significant correction in the near term.