Business · Markets · 2 hrs ago
US tech stocks plunge on fears of AI regulation and higher costs
US technology shares fell sharply on Thursday, with the Nasdaq 100 dropping 6.36% and the S&P 500 losing 4.36%.
The sell-off hit chipmakers and companies that supply AI data centres, including Nvidia, Micron and storage firms.
Data centres power AI services, but critics worry about their electricity use, pollution, noise and limited long-term job creation.
Democrats' midterm election gains raised fears of stricter rules that could delay or increase the cost of new data centre projects.
Investors are also questioning whether the huge cost of AI infrastructure will pay off quickly, while concerns about inflation and higher interest rates add pressure.
The Nasdaq 100 lost about $2.3 trillion in market value, though it remained up 5.5% since the start of the year.
The sources identify no specific next step, and say the decline reflected several pressures rather than one new development.
US stocks plunged on Thursday as investors sold technology and semiconductor shares tied to the artificial-intelligence boom.
The selloff followed Democratic victories in congressional elections and fears that political change could bring tighter rules for data centers.
Investors also questioned whether companies can earn returns matching their large AI investments as financing costs rise and borrowing conditions tighten.
The Nasdaq Composite fell 5.5%, while the S&P 500 dropped 4.4% and the Dow Jones Industrial Average lost 1,833 points.
Nvidia shares fell more than 9%, and the Nasdaq 100 erased about $2.3 trillion in market value.
- Who
- US technology and semiconductor companies, along with investors selling their shares.
- What
- A broad selloff drove major US stock indexes sharply lower.
- When
- Thursday, November 5, 2026.
- Where
- Wall Street and US stock markets.
- Why
- Investors feared political change could bring stricter data-center rules and questioned the returns on large AI investments amid higher financing costs.
This story does not have two clearly opposing sides.
Stocks rose after Democratic election victories as investors expected a political check on President Donald Trump.
US stocks fell as investor attention shifted to possible effects of political change on AI investment and data-center construction.
The Nasdaq Composite was down 5.5%, the S&P 500 had fallen 4.4%, and the Dow had lost about 1,833 points.
- Nasdaq Composite
- Fell 5.5% and closed at 24,315 points
- Nasdaq 100
- Lost about $2.3 trillion in market value
- S&P 500
- Fell 4.4%
- Dow Jones Industrial Average
- Lost about 1,833 points, or 3.4%
- Nvidia
- Shares fell more than 9%
10 sources
أسهم التكنولوجيا الأمريكية تتكبد أكبر خسائرها منذ 18 شهراً
Worst US stock rout since 2020 leaves virtually nowhere to hide as Nasdaq plunges 6.4%, Dow sheds 1,833 points
Tonfo Wall Street, bruciati 3.200 miliardi con la fuga dall'IA
موجة بيع عنيفة تضرب «وول ستريت»... و«ناسداك» يفقد 2.3 تريليون دولار
Aktien New York Schluss: Tech-Flucht - Angst vor KI-Regulierung
Nasdaq gaat onderuit na minicrash chipbedrijven
Börse: Techaktien stürzen ab – das steckt dahinter
What people are saying
I’m getting flashbacks to 2008 or 2001
It’s so focused on one theme and the unwind of that theme. I think it’s something that needed to happen as we have too much focus on AI and it became too big a part of the market.
They did jump the gun