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

Updated on: November 5, 2026 / 4:08 PM EST / CBS News

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 tech-heavy Nasdaq Composite Index tumbled 1,422 points, or 5.5%, to close at 24,315.

The broader S&P 500 dropped 335 points, or 4.6%, to end at 7,354, while the blue-chip Dow Jones Industrial Average plunged 1,835 points, or 3.4%. Investors were reacting to the growing "headline" risks around AI, according to Wall Street analyst Adam Crisafulli of Vital Knowledge.

The rout marks a sharp reversal from Wednesday, when the Dow posted its biggest gain of the year. Other indexes also surged after the election results eased uncertainty about who will control Washington.

"Even though the market rallied Wednesday after the midterm elections, there were visible cracks in the AI ecosystem, and they widened on Thursday amid investor concerns about a potentially slower data center buildout with Democrats in charge of Congress," Chris Larkin, a managing director of…

Original source: https://www.cbsnews.com/world/