AI stocks sell off as Democratic midterm sweep raises fears for data-centre expansion

Summary

AI-linked stocks fell sharply on Thursday, November 5, after the Democratic Party's sweeping victory in the U.S. midterm elections raised fears of moratoriums on data centres and a stall in AI infrastructure expansion. The tech-led Nasdaq Composite fell 5.5%, its deepest one-day drop since 'Liberation Day' in April 2025, and the S&P 500 fell 4.4% in its worst day since April 2025. Smaller firms whose capacity to raise funds was already limited could face a difficult reckoning. Trillions of dollars were wiped off the stock value of major tech firms in the US, Europe and Asia, and the Nikkei 225 in Japan fell 6% following the AI-related declines on Wall Street. Some Democratic candidates had opposed the data centres needed to power AI technology.

Timeline

1. South China Morning Post

   5 Nov 2026, 21:19 UTCSource ↗

   The South China Morning Post reports that the tech-led Nasdaq Composite fell 5.5% on investor fears that the Democrats' midterm sweep could stall AI infrastructure expansion, its deepest one-day drop since 'Liberation Day' in April 2025.

2. CBC News

   5 Nov 2026, 21:31 UTCSource ↗

   CBC News reports that AI stocks worldwide came under pressure over worries about possible moratoriums on data centres after Democratic victories in the U.S. midterm elections, with the S&P 500 down 4.4% in its worst day since April 2025.

3. Le Monde

   6 Nov 2026, 01:26 UTCSource ↗

   Le Monde reports that the Nasdaq lost more than 5% during trading on Thursday and that the midterm results have deepened mistrust toward most companies connected to artificial intelligence and data centers.

4. The Japan Times

   6 Nov 2026, 01:58 UTCSource ↗

   The Japan Times reports that the Nikkei 225 fell 6% following AI-related declines on Wall Street, amid growing concern over tech investment after the Democratic Party's resounding victory in the U.S. midterm elections.

5. France 24

   6 Nov 2026, 13:15 UTCSource ↗

   France 24 reports that trillions of dollars were wiped off the stock value of major tech firms in the US, Europe and Asia as investors worried about an AI slowdown and tougher regulation after Democrats won the midterms, and that some Democratic candidates had opposed the data centres needed to power AI.