AI trade wobbles after Democratic win: What investors should do now

Democrats' midterm election win is shaking the AI trade, with investors fearing new restrictions on data center buildouts, triggering a major tech stock rout on Thursday. The Nasdaq Composite fell 5% into correction territory, while the iShares Semiconductor ETF dropped 11%, its worst day since 2020. Analysts question the $1.2 trillion capex forecast for next year, as potential Democratic policies could slow infrastructure growth, with the 10-year Treasury yield near 4.8% also pressuring riskier assets. Some experts see a buying opportunity in the selloff, urging long-term focus on fundamentals. Others note existing capacity becomes more valuable if new builds are restricted, with pockets of strength in names like Motorola Solutions and Sony.