Wall Street loses $3.2tn as Democratic midterm sweep triggers AI rout

· Finance · United States

US stocks suffered their worst day since 2020 as the Democratic sweep of both chambers of Congress triggered a violent selloff in artificial-intelligence shares. The S&P 500 lost an estimated $2.9 trillion in market value, the largest one-day loss on record, while the tech-heavy Nasdaq 100 tumbled 6.4%. The Financial Times put total Wall Street losses at $3.2 trillion. Investors fear that newly empowered Democrats will curb data-center construction and tighten scrutiny of the AI buildout that has powered the bull market. DBS's chief executive warned of "choppy" equity markets after the midterms. Attention now turns to Friday's October jobs report, which could either calm investors or deepen the rout. Retail selling hit one of its highest levels since the COVID crash.

Why it matters：The rout shows how quickly a political shift can reprice the AI trade that has driven global equity markets, putting data-center investment plans and the valuations of chipmakers and hyperscalers at risk.

Key points

  • The S&P 500's $2.9 trillion one-day loss is the largest on record.
  • The Nasdaq 100 fell 6.4%, its worst session since 2020.
  • DBS's chief executive described equity markets as "choppy" after the vote.

Sources (original reporting)

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