Nasdaq enters correction as data-center votes hit AI stocks

The Nasdaq plunged 5.1% Thursday, entering correction territory, as investors feared Democrats' midterm sweep would slow data-center construction and hurt AI company revenues. The Dow fell 1,097 points, and the S&P 500 dropped 3.2%. Voters rejected data centers in at least 46 of 50 related referendums Tuesday, prompting sharp declines in stocks like CoreWeave, down 14.6%, and Applied Digital, down 19.7%. OpenAI released a "National Community Compact" pledging reduced power usage and local hiring to address backlash. Analysts warn construction pauses could impact 30% of planned capacity by 2028, with Texas, home to 26% of planned capacity, flipping Democratic. Meta's president said hyperscalers may consider building outside the US due to investment risks.