AI Stocks Lose $2.5 Trillion as Investors Fear Democratic Sweep Slows Data Centers

Wall Street's AI trade suffered a brutal sell-off on Thursday, wiping out an estimated $2.5 trillion in market value from the Nasdaq 100 as investors feared a Democratic sweep could slow America's AI infrastructure expansion. The Nasdaq Composite fell 5.5 per cent into correction territory, while the S&P 500 dropped 4.4 per cent, its worst session since April 2025. UBS analysts warned around 30 per cent of expected US data centre capacity additions in 2028 could be at risk due to potential construction pauses. Investors dumped chipmakers, data centre operators and power suppliers amid concerns over tighter oversight and stricter environmental rules. Disappointing earnings signals and questions about AI investment returns had already made markets nervous, with analysts noting a shift in investor expectations rather than loss of long-term confidence.