Technology stocks lead the US market decline as investors weigh the impact of the midterm election results on the artificial intelligence industry. U.S. markets fell on Thursday, with losses in U.S. stocks related to chips and data centers fueling pressure on the technology sector following Democrats’ sweeping victories in the midterm elections. The tech-heavy Nasdaq was down 4.8 percent in midday trading, while the S&P 500 fell 3.6 and the Dow Jones Industrial Average fell 2.8 percent.Recommended Stories list of 4 itemsend list U.S. markets jumped on Wednesday after the midterm elections, and sweeping victories by Democrats indicated limits to the political impacts of a Congress at odds with the White House. Markets were also reassured by US President Donald Trump’s statements that he would accept the election results. Artificial intelligence (AI) stocks, which have fueled much of the market’s growth, led the decline in the technology sector that sent markets tumbling on Thursday. Of the 45 data center ballot initiatives across the country, voters supported restrictions on most of them. According to Data Centers on the Ballot, 39 ballot measures to restrict AI were successful, while only one, in North Dakota, voted against the restrictions. UBS analysts estimated that potential construction pauses could put about 30 percent of planned U.S. data center capacity additions in 2028 at risk, according to Reuters news agency. political resistance to AI infrastructure, particularly at the state and local level,” Michael Monaghan, portfolio manager at Founders 100 ETF, told Al Jazeera. “We’re seeing that concern reflected in the selloff of semiconductors and hyperscalers.” Data center operators and neocloud companies were plunging, with CoreWeave down more than 12 percent and Nebius Group down nearly 17 percent. Semiconductor stocks, as the AI market leader, Nvidia, down 8.2 percent, Micron down nearly 14 percent and Intel down 6.8 percent in midday trading. AI server maker Dell fell nearly 13 percent. Other tech giants were also in negative territory, with Amazon down 2 percent and Facebook and Instagram parent company Meta down 3.8 percent also taking a big hit, with shares falling 9.5 percent, while Tesla, also owned by the billionaire. Elon Musk, fell more than 11 percent, following Musk’s nearly $500 million midterm election spending spree. In Texas, where both companies are based, Musk bet against Democratic candidates who ended up winning their races. Musk spent $230 million to defeat U.S. Senate candidate James Talarico, $5 million to back Gina Hinojosa’s opponent in the race for governor, and $500,000 in the race for governor. lieutenant governor, won by Democrat Vikki Goodwin. Dan Ives, managing partner at Yorkville Ives, said in a note on Thursday. Gold prices hit a two-week high on Thursday. Spot gold, typically considered a safe investment in times of economic uncertainty, jumped just over one percent to $4,115 an ounce. Technology stocks also pushed down the European benchmark stock index on Thursday as investors assessed the sector’s outlook following the Democratic victory. in the US midterm elections, Reuters reported. Democratic sweep,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
