Global stocks plunge as Democrats' midterm win sparks AI panic
Global stocks tumble as AI panic grips markets after Democrats' midterm success
A Democratic sweep in the US midterms sent investors fleeing tech stocks, wiping more than $3.2tn off US markets in a single day. The Nasdaq fell 5.5% and Nvidia dropped over 9%, while Japan's Nikkei sank nearly 6% and South Korea's KOSPI 6.7%. Traders fear a Democrat-controlled Congress will slow data-centre approvals and cool the AI buildout, just as earnings season already hinted at slowing AI spending.
It's not just a slap in terms of valuation. It's basically a whole policy and six-year structural shift that says we're now going to pause, we're now going to cool AI, we're now going to cool data centres, approvals and equity capital markets.
- difosfor
- eunos
Trump admin kinda prop the stocks high and oil price low to have better midterm odds. That wouldnt matter now, so expect price and value normalization
- thinkcontext
Say what you will about him, Elon got his IPO money at peak valuation. Seems unlikely that Anthropic and Openai will get nearly as much.