Major tech stocks plunge as US midterms add to fears of AI slowdown

Hundreds of billions of dollars in market value has been wiped from major tech firms in a stock market rout after the US midterm elections sparked concerns of a slowdown in AI development. Following Democratic wins after election campaigns run on slowing AI, shares in firms across the tech and artificial intelligence sectors plummeted.

The tech-heavy Nasdaq composite stock index closed down by more than 5.5% to lose an estimated $2.5tn in market capitalisation, according to Dow Jones data, while other key US stock indexes also saw big losses in their worst days since 2025. Democrats in races across the US campaigned to slow the onslaught of data centres and AI, and there were dozens of measures on ballots around the country aimed at restricting the development of the hubs crucial for powering the technology.

Texas governor-elect Gina Hinojosa campaigned heavily against data centres, pledging a moratorium on new construction in the sector.