AI stocks plunge after US election, driving down markets

United States markets slid on Thursday, with losses in US chip and data centre-related stocks fuelling pressure on the technology sector following Democrats’ sweeping midterm election wins. The tech-heavy Nasdaq was down 4.8 percent in midday trading, while the S&P 500 fell 3.6 and the Dow Jones Industrial Average slid 2.8 percent. US markets jumped on Wednesday following the midterm election , with Democrats’ sweeping wins signalling limits on policy shocks from a Congress at odds with the White House.

Markets were also reassured by US President Donald Trump’s remarks that he would accept the election results. Artificial intelligence (AI) stocks – which have driven much of the market’s growth – led the plunge in the tech sector that drove down markets on Thursday. Of the 45 data centre ballot initiatives around the country, voters backed restrictions on most of them.

According to Data Centers on the Ballot, 39 ballot measures to restrict AI were successful, while only one — in North Dakota — voted against restrictions.