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Updated 13h ago · Tech

AI Stocks Plunge, Wiping Out Trillions in Value

U.S. stocks rallied Wednesday after Democrats won control of Congress in the midterm elections. Chip and AI stocks then fell globally Thursday.

1,500-plus points: the Dow's gain Wednesday; the S&P 500 rose 1.6%.
24.5% drop for Trump Media & Technology Group on Wednesday.
8.7% plunge in Brent crude Wednesday, to $94.62 a barrel.
5.3% fall in South Korea's Kospi Thursday, led by chipmakers.

Why it matters: Traders are betting a Democratic Congress means tighter oversight of AI buildouts, pressure to end the Iran war, and less federal spending.

Defense stocks fell: Lockheed Martin dropped 6.9%, Northrop Grumman 4.5%.
Goldman's Alec Phillips sees moratoria potentially hitting about 45% of planned data center expansion.
Gold topped $4,100 an ounce, its largest two-day jump since April.

The story so far

81 steps · since Oct 10

Oct 10–Nov 1
Nov 13:29 PMVance Rallies in Ohio and New York on Election Eve82 sources
Nov 1
Nov 26:37 AMTrump Delivers Closing Pitch at Reflecting Pool Before Midterms68 sources
Nov 2–3
Nov 38:46 PMStocks Swing as Democrats Sweep Midterm Elections59 sources
Nov 4
Nov 411:29 PMAI Stocks Plunge, Wiping Out Trillions in ValueYou are here
Nov 8Asian Stocks Rebound as AI Rout Eases10 sourcesLatest

How 74 sources split on this story

Source landscape

Factuality

High

Mixed

Low

Strong LeftLeftLean LeftCenterLean RightRightStrong Right

Political Bias

Coverage by lean% of 74 sources

74 sources · 172 articles · 41% Center coverage

Where they split: Coverage differs on emphasis: whether the takeaway is a broad market rally or a selloff in AI and chip stocks.

Center coverage, 30 sources: The center frames it as a broad global rally after the midterms, offset by heavy AI-related selling.

CTV News3dWall Street stocks in relief rally after heavy AI-related selloff Bloomberg17hTech Stock Rout Exposes Market Risks From AI Bets and Political Uncertainty MarketWatch14hUntil sentiment in the AI trade improves, Citi tells investors it’s better to sit out the global tech trade CNBC3dOpenAI, Arm and Qualcomm executives react to post-midterm AI sell-off Financial Times14hTech sell-off raises risks for SoftBank’s massive AI bet IBTimes3dStocks See Slight Rebound After Thursday's Rout But Remain Well Below Highs Associated Press2dFrom high-flying AI stocks to tariff-hit alcohol companies, the midterms shook up Wall Street Fortune4dU.S. futures signal the carnage in tech stocks over the last 24 hours may be overdone | Fortune Newsweek3dAI Stocks Rebound After Rout as Trump Doubles Down on Data Centers Axios4dTrump says voters should blame themselves for stock market rout Deutsche Welle4dEuropean shares join global sell-off after AI fears hammer Asian markets Forbes4dChipmakers Tumble Toward Worst Day In Years: Nvidia, Micron And Broadcom Down Over 8%Japan Times4dBlue tsunami wipes out $2.5 trillion from Nasdaq as investors fret about AI trade Scripps News3dWhat’s really behind Wall Street’s post-election whiplash Semafor4dStock selloff goes global in worst rout in years Asia Times4dKorea, Taiwan and Japan take first jolt from Democratic AI shock - Asia Times BBC News3dAI stocks bounce back after trillions wiped from market values Chicago Tribune4dA brutal sell-off for AI stocks sends Wall Street reeling, and the S&P 500 tumbles 4.4%Council on Foreign Relations3dThe Midterms Rattled AI Stocks. Here’s What to Watch in the Broader Economy.Deadline4dStocks Tank Amid Tech Sell-Off, Reversing Post-Election Rally Foreign Policy0mGlobal AI Stocks React to U.S. Midterm Results France 244dTech stocks plunge as US midterm results fuel fears of tighter AI rules KHOU 11 Houston3dHouston's 10 largest public companies' stock prices fall after midterms, some with double-digit drops NOTUS4dTrump Blames Stock Market Losses on Voters: ‘You Only Have Yourselves to Blame’ - The Washington Sun NPR4dFears about an AI crackdown after midterms sparks a $2 trillion rout in tech stocks The Hill4dMarkets tank after post-Election Day surge The National Desk3dWall Street's wild ride: What the market volatility means for your money USA Today4dWhy the midterm blue wave just triggered a red Wall Street WFLA News Channel 84dA brutal sell-off for AI stocks sends Wall Street reeling, and the S&P 500 drops 4.4%WPLG Local 102dFrom high-flying AI stocks to tariff-hit alcohol companies, the midterms shook up Wall Street

Left coverage, 18 sources: The left frames the story as markets reacting to a Democratic wave, with gold rising and AI stocks falling.

The Independent2dFrom high-flying AI stocks to tariff-hit alcohol companies, the midterms shook up Wall Street CNN2dAI nerves reinforce age-old investing lesson: Get diversified NBC News4dStocks tumble as midterms fuel AI fears and judge halts Trump’s D.C. arch: Morning Rundown The Boston Globe3dTech stocks suffer correction as AI boom challenged by voters The Guardian3dUS tech stock rout: is the AI bubble bursting?The Washington Post3dWhy investors are dumping AI company stocks after Democrats’ election sweep Al Jazeera4dTech stock rout, driven by US AI fears, continues in Asian trading Business Insider4dTech titans like Musk, Huang took $150B wealth hit from AI stock rout CBS News3dStocks rebound after tech selloff that pushed Nasdaq into correction Raw Story4dTrump rages over election night market plunge: ‘Such a sad thing to watch!’ABC News4dDow plunges 1,200 points, shedding most of midterm results stock rally Boston.com4dA brutal sell-off for AI stocks sends Wall Street reeling, and the S&P 500 tumbles 4.4%Gizmodo4dTech Rout Wipes Out $2.5 Trillion, With AI Investors Anticipating Heavier Scrutiny From Dems HuffPost4dA Brutal Sell-Off For AI Stocks Sends Wall Street Reeling, And The S&P 500 Tumbles 4.4%Los Angeles Times4dA wipeout for AI stocks sends Wall Street reeling, and the S&P 500 tumbles more than 3%Politico4d‘Total bloodbath’: Democrats‘ sweeping wins rock Wall Street over AI fears San Francisco Chronicle4dBay Area AI stocks plunge after data center voter backlash The New York Times4dStocks Erase Post-Midterm Elections Rally, Dragged Down by Tech

Right coverage, 26 sources: The right frames it as a blue-wave purge of chip stocks driven by fears of a data center backlash.

ZeroHedge2dThe AI Wreck And The Biotech Bid Daily Mail3dThe Democrat's blue tsunami turned stock markets red across the world, says MAGGIE PAGANO The Epoch Times4dNasdaq Opens Higher After Worst Selloff in 19 Months Citizen Free Press4d$2 trillion in tech stock valuation wiped away.Newsmax4dS&P 500 Falls 4.36%, Erasing $3 Trillion in Market Cap The Washington Times2dFrom high-flying AI stocks to tariff-hit alcohol companies, the midterms shook up Wall Street Breitbart News3dAI Fears Shake Market as 'Magnificent 7' Lose $1 Trillion in Value Just the News5dStocks tumble, Dow loses more than 1,800 points over AI fears, erasing gains following midterms New York Post4dStunning losses on Wall Street as S&P 500, Nasdaq see biggest market cap drops ever in wake of midterms The Right Scoop4dBREAKING: Trump responds to major Stock Market decline after midterms BizPac Review4dWall Street has AI-induced bloodbath as exchange has worst day of year Fox News4dNasdaq looks to rebound after AI-driven correction erased $2.5 trillion in market value FrontPage Magazine4dStock Market Falls After Dem Threat To Go After GOP Donor Corps Hot Air4dThanks, Democrats: Tech Stocks Getting Creamed NTD3dNasdaq Rebounds After Worst Selloff in 19 Months One America News5dTrump: Stock market numbers 'through the roof'RedState4dDemocrats Haven’t Taken Power Yet. Their AI Agenda Is Already Punishing Your Portfolio.The American Conservative4dMarkets Plummet On AI Fears The Blaze4dStocks plummet amid Democrat calls to end AI, wiping out trillions The Daily Caller4dWall Street Has AI-Induced Bloodbath As Exchange Has Worst Day Of Year The Daily Wire4dTrillions Vanish In Record Selloff As Wall Street Panics Over Dem Takeover The Gateway Pundit4dJUST IN: Stocks Plunge After Democrats Sweep Midterm Elections – AI Rout Wipes Out Trillions * The Gateway Pundit * by Cristina Laila The National Pulse4dAI Plunge Goes Global as Democrat Midterm Gains Hit Markets from Wall Street to Europe.The Sun3dGlobal tech stock crash sees biggest sell-off since Covid – what does it mean for your money?The Telegraph4dUS stocks nosedive as Democrat victory sparks investor panic The Western Journal4dBreaking: Stock Market Plummets to 'Correction' Zone as 'True Panic' Sets in Two Days After Election

What’s next: The new Democratic-led Congress takes control in January.

Musk's companies are possible investigation targets for a Democratic Congress.
The Bank of England raised rates to 4% and signaled more hikes if the Iran war continues.
Will a Democratic Congress actually move to restrict data center construction?
Will congressional pressure change the Trump administration's approach to the Iran war?