Wall Street slides as Democratic midterm win threatens AI boom

Wall Street experienced severe turbulence on Thursday, with technology stocks leading a sell-off amid fears that the Democrats' decisive midterm election victory could hinder US artificial intelligence infrastructure expansion. The Nasdaq 100 plunged as much as 6.4%, while the Philadelphia Semiconductor Index fell 10.8%. Nvidia dropped nearly 9%, and the S&P 500 lost over 4%, heading for its worst daily decline since Trump's tariff offensive in April 2025. Investor sentiment reversed after an initially positive reaction, as candidates who campaigned against data center construction won key races in Texas, Georgia, and Ohio, raising concerns about increased restrictions on AI development. The sell-off reflects worries that the peak of AI capital spending may have passed, threatening growth prospects for tech companies that benefited from the boom. Industry leaders acknowledged underestimating public opposition to data centers over electricity, water, and pollution concerns, with one executive calling the election "a major wake-up call."