AI Stocks Crumble After Democratic Wins as Investors Fear Slower Data Center Growth

Wall Street took a hard hit on Thursday as traders began pricing in what a Democratic sweep could mean for artificial intelligence. The Nasdaq Composite fell 5.56%, its steepest daily drop in 19 months, with technology shares leading the selloff.

Why Midterm Results Rattled Tech Investors

Democrats flipped seven Senate seats, gained at least 39 House seats and took five governorships, including wins in Republican leaning states such as Texas, South Carolina, Kansas and Iowa. Markets worry that new lawmakers and governors will slow the construction of the data centers that powered this year’s AI rally. SimCorp’s Melissa Brown said a full stop looks unlikely, but any slowdown would be a problem because the AI growth story depends on fast infrastructure buildout.

Trump’s Response and What Comes Next

Trump’s only public event was signing an order to turn the Oval Office into a national monument. He admitted to some mistakes but said nothing about the market drop or AI rules. Alaska and Mississippi remain undecided, and Democrats could reach 56 Senate seats. Republicans keep control until January and can use the December funding bill to push their priorities.