AI stock selloff ends post-election rally as data center fears mount

US stocks plunged Thursday as investors sold off AI-related shares, ending a brief post-election rally fueled by concerns that Democratic victories will bring tighter data center regulation and slow investment. The S&P 500 fell 3.2%, the Dow dropped over 1,000 points, and the Nasdaq 100 plunged 5% into correction territory. Losses hit chipmakers, memory firms, and data center operators, with Nvidia down 5% and Micron down 11%, as fears grew over the economic impact of reduced AI capital spending. Analysts at Jefferies called the Democratic sweep a "worst-case near-term scenario" for AI, citing regulatory risks. Data center construction, which surged 80% in September, is a key growth driver, and investors now await Friday's jobs report for clues on Federal Reserve policy.