AI Stocks Plunge After Midterm Elections: What It Means for Your 401(k)

AI stocks suffered their worst day on Wall Street in over a year Thursday after Democrats' sweeping midterm victories, with Nvidia sliding 8 percent and AMD plummeting 16 percent, raising concerns for Americans' retirement savings. Investors fear increased federal oversight of AI data centers could slow construction by 30 percent by 2028, and voters rejected or restricted data centers in 35 of 41 ballot measures. Younger 401(k) holders, with higher stock allocations averaging 89 percent, face greater exposure than those in their 60s at 57 percent. Financial experts advise rebalancing portfolios with low-risk funds if withdrawals are imminent, though they expect volatility to subside within three to six months. The Nasdaq fell 5.42 percent Thursday, but AI stocks remain up 20.2 percent this year.