SpaceX shares plunge 7% as tech and AI stocks fall after US midterms

Shares in Elon Musk's SpaceX plunged over 7% in early trading Thursday as tech and AI stocks broadly fell following the Democrats' midterm sweep, dragging the Nasdaq Composite down more than 5% at one point. The market decline reflects fears of tougher scrutiny on data centre construction and the AI industry after Democratic wins in key states like Texas, where governor-elect Gina Hinojosa campaigned on a moratorium for new data centres. Tesla shares also dropped over 9%, while chipmakers suffered steep losses, with AMD down nearly 17% and Micron over 20% in five days. Musk had spent nearly $450m backing Republican campaigns, including support for Texas senate candidate Ken Paxton, who lost. Tech leaders, including OpenAI's Greg Brockman and Meta's Dina Powell McCormick, acknowledged at a conference they were surprised by the backlash and need to improve community engagement on AI benefits.