Investors staged a full-scale retreat from artificial intelligence and tech stocks Thursday, triggering one of the worst single-day market selloffs in history just 24 hours after Democrats secured key midterm victories. The panic erased trillions in market value as traders braced for potential Democratic-led regulatory crackdowns on data centers and AI development.
Markets in Freefall
The S&P 500 plunged 4.36%, wiping out $2.9 trillion in value, while the Nasdaq nosedived 5.52% with $2.5 trillion vanishing from tech stocks alone. The Dow Jones Industrial Average surrendered all of Wednesday’s 1,500-point rally—its best performance in 18 months—by dropping 1,833 points (3.44%). Early retirement accounts took a direct hit, with one analyst estimating average 401(k) balances dropped about 4% in the bloodbath.
Tech Giants Collapse
The so-called “Magnificent Seven” tech stocks lost over $1 trillion combined. Nvidia led the carnage with a $374 billion valuation drop as shares slid 9%. Tesla and Microsoft bled $161 billion and $117 billion respectively, while Broadcom cratered 10% and Oracle fell 7%. Cloud computing firms specializing in AI infrastructure absorbed the heaviest blows—Nebius plunged 15% and CoreWeave dropped 10% amid fears of construction halts.
Political Backlash
Former President Donald Trump blamed Democrats directly for the market collapse, calling it “a sad thing to watch” in a Thursday statement. “Your 401(k)s have dropped. Remember, it wasn’t Republicans, it was Dumocrats,” he wrote, while vowing a future recovery. Meanwhile, progressive Democrats moved swiftly to capitalize on their electoral gains—Sen. Bernie Sanders demanded an immediate national data center moratorium, while Rep. Greg Casar (D-TX) rallied support for halting new “superintelligence” projects.
Texas Ground Zero
The fallout could disproportionately impact Texas, where about 25% of planned U.S. data center capacity sits. Democrats flipped a Senate seat and unseated Gov. Greg Abbott, replacing him with Gina Hinojosa, who campaigned on pausing new developments. Analysts warn up to 30% of planned data center construction could face delays or cancellation through 2028 under Democratic pressure—a projection that sent shockwaves through energy and tech sectors.
Long-Term Uncertainty
While futures showed modest early Friday rebounds, the selloff revealed deep anxieties about how Democrats might leverage their midterm gains to regulate AI infrastructure. Party leaders have vowed public hearings and new tech “guardrails,” with some pushing to force CEO testimony under oath. Though some Wall Street analysts argue tech stocks were overvalued pre-election, the abrupt political shift has introduced new volatility that could reshape the sector for years.
Source: www.dailywire.com — https://www.dailywire.com/news/trillions-vanish-in-record-selloff-as-wall-street-panics-over-dem-takeover