Trillions Wiped from Markets as Wall Street Panics Over Democrat Takeover
by David Lindfield
Investors dumped artificial intelligence stocks Thursday, wiping out a record $2.9 trillion in S&P 500 market value as Wall Street panics over the Democrats’ sweeping midterm victories.
The selloff came as Sen. Bernie Sanders (I-VT) demanded an immediate nationwide moratorium on new data centers.
The calls from the Left are igniting fears that the AI bubble could soon burst.
AI Stocks Lead the Rout
The S&P 500 fell 4.36% to 7,353.73, while the tech-heavy Nasdaq plunged 5.52% to 24,315.
The plunge has wiped out $2.5 trillion in market value.
The Dow fell 1,833 points, or 3.44%, to 51,523.06, more than erasing Wednesday’s 1,500-point rally, its best day in a year and a half.
The Magnificent Seven stocks alone shed more than $1 trillion.
Nvidia shares fell 9%, wiping out $374 billion in market value.
Tesla lost $161 billion, and Microsoft lost $117 billion.
Broadcom dropped 10%, while Oracle fell 7%.
Qualcomm sank 9% after issuing a gloomy forecast despite beating earnings estimates.
Companies that rent out AI computing power were among the hardest hit, with Nebius plunging 15% and CoreWeave dropping 10%.
Retirement savers took a hit as well.
One money manager estimated that 401(k) accounts lost about 4% in a single day.
President Donald Trump called the selloff “a sad thing to watch” and blamed Democrats’ midterm victories.