Why the midterm blue wave just triggered a red Wall Street

USA Today · , USA TODAY · 2026-11-05 17:59 UTC

AI and data center stocks slump as investors worry a new Democratic-controlled Congress will curb the industry's growth. Nasdaq falls into correction.

Midterm election results weighed heavily on U.S. stocks, particularly shares in data center and artificial intelligence, as investors worry a Democratic Congress will slow their development.

The tech-heavy Nasdaq closed down a steep 5.52%, or 1,421.516 points, to 24,314.997, which put it down more than 10% from its high last month and into what analysts call "correction" territory. Double-digit percentage losers included Advanced Micro, Sandisk, Micron, Dell and Marvell Technology.

The broad S&P 500 dropped 4.36%, or 334.89 points, to 7,353.73 and the blue-chip Dow plunged 3.44% or 1,833.06 points, to 51,523.06. All three major stock indexes had their worst day since April 2025.

Read the full story at USA Today · All coverage of this story