Tech Stocks Plunge as US Midterm Results Spark AI Slowdown Fears

WASHINGTON, Nov 6 (OPA) — The tech-heavy Nasdaq composite stock index closed down by more than 5.5% on Thursday, losing an estimated $2.5tn in market capitalisation according to Dow Jones data. The sell-off marked its worst single session since 2025, sending shockwaves through global financial markets as investors reacted to the shift in congressional power.

Democratic candidates won both the US Senate and House of Representatives in Tuesday's midterms, seizing control of Congress for the remainder of President Donald Trump's term. Campaigns across multiple states focused heavily on slowing the expansion of data centres, with numerous ballot measures aimed at curbing the hubs required to power large-scale artificial intelligence models.

Chipmakers and semiconductor manufacturers bore the brunt of the market reaction. Nvidia shares slid more than 9%, erasing over $400bn in value, while AMD and Micron dropped by more than 17%. Intel fell 10.3% and SanDisk plunged over 22%. Elon Musk's companies also suffered severe losses, with SpaceX dropping 8% and Tesla plunging nearly 11%.

President Donald Trump blamed the historic market slide on his political opponents in a social media statement. Meanwhile, market analysts noted that the political backlash has compounded existing investor anxiety regarding whether massive capital expenditure on artificial intelligence infrastructure will generate sufficient financial returns.