Nasdaq falls 5% as data centre concerns rattle markets after US midterms

Summarised from 3 outlets · Updated 5 Nov, 17:03 · Archive

The Nasdaq plunged 5.1% on Thursday, entering correction territory, as investors worried Democrats' election victories could slow data centre and AI projects.

The Nasdaq plunged 5.1% on Thursday, entering correction territory, with the S&P 500 falling 3.2% and the Dow Jones down 2.1%, as concerns over data centre expansion swept markets following Democrats' midterm victories.

Voters decisively rejected data centre projects on Tuesday, with Americans voting against new data centre construction in at least 46 of 50 referendums across the country. Several Democrats had campaigned on concerns around artificial intelligence and data centres. Industry-related stocks fell sharply: chipmakers Nvidia and Broadcom each dropped around 8-9%, data centre operators like Applied Digital and Iren fell 19.7% and 20% respectively, and companies like CoreWeave and Nebius fell 14.6% and 18%. Elon Musk's Tesla and SpaceX each plummeted 10%.

Industry leaders moved to address concerns. OpenAI pledged to work with local communities and reduce power usage, whilst Meta's president acknowledged that data centre buildouts are 'going to be harder' moving forward. Market analysts described the sell-off as a correction, with some suggesting it looked 'overdone' but noting that broader market momentum could sustain losses until stability returns.

How it is being reported

• Shares in Musk's SpaceX plunge as tech and AI stocks fallThe market has been reacting to possible tougher scrutiny of data centre construction and the AI industry following the US mid-termsBBC Technology · 5 Nov, 16:44
• ‘The blood is in the streets’: Nasdaq plunges as US midterms rattle SpaceX and NvidiaThe Nasdaq index was plunging into the red on Thursday after the US midterms rattled AI-related stocks including Nvidia, Oracle and SpaceX. The tech-heavy index, which tracks 100 of the largest non-financial companies, sank more than five per cent to around 24,416 points. Chipmakers Nvidia and Broadcom each helped lead losses down eight and nine [...]City AM · 5 Nov, 16:37
• Nasdaq plunges into correction territory as Dem wins threaten data centers — and AI giants rush to stem falloutThe Nasdaq plunged 5.1% Thursday, entering into correction territory, as investors and industry leaders braced for a data-center reckoning in the wake of Democrats' midterms sweep.New York Post · 5 Nov, 16:28

In this story: Nasdaq · Democrats · OpenAI · Meta · Nvidia · Tesla · United States

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