One Turn
S&P 500 falls 4.4% as AI stocks plunge after midterms
US stocks fell sharply on Thursday. The S&P 500 dropped 4.36%, its worst day since April 2025, and the Nasdaq lost 5.5%. Investors worry that Democrats may push limits on data centers and the AI industry. Tesla and SpaceX lost more than $420 billion in combined market value. Asian markets fell on Friday, and South Korea halted trading on its main index with a circuit breaker.
Why it matters
A drop in AI shares hits retirement savings and could slow spending on data centers worldwide.
Background
AI companies have driven much of the stock market's gains in recent years. Some Democrats have called for a national pause on data center construction.
The story so far
- Wall Street has worst day since June on AI cost fears
- Wall Street falls as tech sell-off deepens
- S&P 500 falls 4.4% as AI stocks plunge after midterms
- Global tech stocks fall on fears of AI curbs after US midterms
- Tech stocks slide as midterms raise AI regulation fears
Sources
- CBC News ↗Nov 5, 4:31 PM ET
- UPI ↗Nov 5, 5:59 PM ET
- BBC News ↗Nov 5, 8:26 PM ET
This summary was written automatically from the reporting linked above; follow the sources for the full story. How One Turn works.