U.S. stock markets suffered a steep sell-off on Thursday following a wave of midterm election victories by anti-AI candidates from Maine to Alaska. The market downturn was further accelerated by lackluster financial earnings reports from major chipmakers Qualcomm and Arm Holdings, combining political shifts with growing investor anxiety over the durability of the artificial intelligence boom.
The tech-heavy Nasdaq 100 index tumbled 6.3%, wiping out $2.3 trillion in market value, while the S&P 500 dropped 4.4%, erasing $2.8 trillion. Both benchmarks experienced their worst trading session since April 2025. The broader Nasdaq Composite fell over 5.5%, crossing into correction territory with a decline of at least 10%. Major corporations felt the impact directly, as Nvidia sank 9.2% and Elon Musk's Tesla and SpaceX each slid nearly 10%.
Market analysts note that the election results surprised investors who had not anticipated the scale of Democratic wins, particularly candidates pledging to rein in or slow the construction of power-hungry AI data centers in major markets like Texas, Ohio, Michigan, and Georgia. The pressure quickly spread internationally overnight, triggering an 8% plunge and a temporary trading halt in South Korea's Kospi index, alongside a 3% drop in Japan's Nikkei 225.
