Stocks plunge as election outcome and AI worries crush tech shares

Stocks plummeted Thursday, as a blue wave of victories by anti-AI candidates from Maine to Alaska added to already growing fears about the durability of the artificial intelligence boom.

The tech-focused Nasdaq 100 index dropped 6.3%, erasing $2.3 trillion in market value, as investors stepped back to evaluate new risks to the billions of dollars in investments that have poured into the AI sector.

The S&P 500 plunged 4.4%, erasing $2.8 trillion from the index’s value. Both indexes suffered their worst day since April 2025, when President Donald Trump’s global tariffs rocked markets.

The broader Nasdaq Composite, which tracks more than just tech stocks, fell more than 5.5% and tumbled into “correction” territory, which is when a stock or index declines at least 10%.

Markets had largely expected Democrats to win majorities in Congress. But they did not anticipate the scale of the victories, or the upset wins of candidates like Gov.-elect Gina Hinojosa in Texas, the largest data center market in the country.

Democrats still hope to clinch Senate seats in Mississippi and Alaska. But already, hundreds of candidates who pledged to rein in AI data centers have been elected to office, raising the prospect of increased regulation on…

Original source: https://www.nbcnews.com/business