US Stocks Plunge as Voter Backlash Against AI Data Centers Spurs Selloff

US stocks plunged Thursday in reaction to the US midterm elections, with tech shares suffering their worst day in years amid growing skepticism toward the AI boom. The PHLX Semiconductor Index fell over 12 percent, while the Nasdaq dropped 5.5 percent. The selloff was driven by widespread local opposition to AI data centers, as voters rejected nearly all such projects in dozens of community ballots. With Democrats gaining numerous government posts, investors expect regulatory shifts that could halt construction, including a proposed moratorium in Texas. The market turmoil may impact Anthropic's upcoming IPO, with investors now questioning its $1.5 trillion valuation target. The Nasdaq 100 lost about $2.5 trillion in market value Thursday, and analysts expect the decline to continue, with Japan's Nikkei already falling sharply.