Dow sheds more than 1,800 points as midterm results spur investor exodus from tech and AI

CBS News · Mary Cunningham · 2026-11-05 18:02 UTC

The tech-heavy Nasdaq is now in a "correction" as Wall Street weighs the impact of the Democrats' wins on the critical AI sector.

The stock market tanked on Thursday amid concerns that a shift in congressional political control following the U.S. midterm elections could slow the construction of data centers that power artificial intelligence services.

Stocks sank across the board, but technology companies with a hand in the AI sector were hit especially hard. The Nasdaq Composite Index tumbled 1,422 points, or 5.5%, to close at 24,315. The drop means the tech-heavy index is now in a "correction," or down more than 10% from its most recent all-time high, set in October.

The broader S&P 500 dropped 335 points, or 4.4%, to end at 7,354, while the blue-chip Dow Jones Industrial Average plunged 1,833 points, or 3.4%.

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