US stocks slide as Democrats win midterms, hitting AI shares
US stocks plunged after Democrats won majorities in both houses of Congress in the US midterms, triggering a mass sell-off of AI stocks. The Nasdaq 100 dropped 6.3 per cent, wiping out $US2.3 trillion in market value. Investors fear Democrats will crack down on AI regulation and make data centre construction harder, particularly in Texas, which turned blue. Elon Musk's Tesla and SpaceX shares fell 11 per cent and 9 per cent, while chipmakers and neoclouds like CoreWeave and Nebius also suffered heavy losses. The VIX volatility gauge surged 50 per cent to a seven-month high. Some analysts see the pullback as a correction of an overheated AI bubble, while others note tech's underperformance may attract long-term investors.