US stocks plunge as tech rout erases $2.3 trillion
· Economy · United States
US technology shares plunged on Thursday in the worst session since 2020, after Democrats swept both chambers of Congress in the midterm elections. The S&P 500 fell 4.4% and the Nasdaq dropped 5.5%, its worst day in 18 months, as investors bet that a Democratic Congress will scrutinise data centre construction and the artificial intelligence industry more closely. Technology stocks lost a record $2.3 trillion in value. Nvidia and Qualcomm each fell more than 9%, and the Magnificent 7 lost about $1 trillion. The VIX, Wall Street's fear gauge, posted its biggest one-day move since April. Futures pointed to steep losses in Asia on Friday, and Japanese equity futures also signalled declines. Democratic winners and progressive lawmakers have already called for tighter limits on AI and data centres, including a national data centre moratorium.
Why it matters：The sell-off shows how quickly US politics can reprice the global AI trade, hitting chipmakers, energy suppliers and data centre builders far beyond Wall Street.
Key points
- The S&P 500 fell 4.4%, its worst session since April 2025.
- Nvidia and Qualcomm dropped more than 9%; the technology sector lost $2.3 trillion.
- Democrats are already calling for a national data centre moratorium.