Fears of an AI crackdown after midterms spark $2 trillion rout in tech stocks
NPR · Rafael Nam ·
Shares sank, with the tech-heavy Nasdaq dropping over 5%, as investors reacted with fear that a Democratic Congress — and states across the country -— would crack down on AI and data centers.
Two days after Democrats won overwhelmingly in the national midterm elections — and in state races across the country — investors started to come to terms with the potential consequences.
Fears that an incoming Democratic Congress would crack down on AI sent the tech-heavy Nasdaq down more than 5% and wiped out more than $2 trillion in market value. The Dow Jones and S&P also sank.
The losses were a stark reversal from Wednesday, when investors had initially sent shares higher across the board, relieved that the midterms did not end with the fate of Congress undecided.