Investors wipe $2.5 trillion off Nasdaq as blue tsunami prompts AI fears

Investing.com · 2026-11-05 11:23 UTC

Investors wipe $2.5 trillion off Nasdaq as blue tsunami prompts AI fears

By Niket Nishant and Caroline Valetkevitch

Nov 5 (Reuters) - Tech-led Nasdaq notched its deepest one-day drop since ‘Liberation Day’ in April 2025, wiping out trillions in market value on fears of more AI scrutiny, particularly on data center construction, after Democrats won big in US midterm elections.

The Nasdaq Composite fell 5.5% on investor fears that the Democratic Party’s sweeping midterm victory could stall AI infrastructure expansion and force a reckoning for smaller firms whose capacity to raise funds has already been limited by higher interest rates and tighter financial conditions.

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