A massive stock market rout has hit the tech world hard. Concerns are growing that artificial intelligence development could slow down following the US midterm elections. The tech-heavy Nasdaq composite index dropped over 5.5%, losing an estimated $2.5tn in value according to Dow Jones data. Other key US indexes also witnessed their worst trading day since 2025.

Democrats swept the races, securing both the US Senate and the House of Representatives. This gives them control of Congress for the remainder of Donald Trump's presidency. Their campaigns focused heavily on curbing data centres and the rapid rise of AI, with numerous ballot measures targeting the crucial hubs that power this tech.

Chipmakers and Big Tech bleed value

The fallout hit semiconductor firms and data centre-linked companies immediately. Nvidia shares tumbled by over 9%, erasing more than $400bn from its market value. AMD and Micron both crashed by more than 17%, Intel fell 10.3%, and SanDisk plunged over 22%. The Philadelphia Semiconductor Index slid more than 12%.

The sell-off did not spare Elon Musk's companies. Tesla sank nearly 11% and SpaceX fell 8%, jointly losing over $300bn in value. Musk had spent nearly $450m backing Republican campaigns, including at least $45m for Ken Paxton in Texas, but the state turned blue. In total, the magnificent seven tech firms, including Apple, Nvidia, and Tesla, shed one trillion dollars in a single day.

“The Stock Market suffered one of the Worst Days in History based on the results of the Election. Remember, it wasn't Republicans, it was Dumocrats. Do not fear, however, we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE. MAKE AMERICA GREAT AGAIN!”Donald Trump

Political blame and tech shock

US President Donald Trump pointed fingers at his opponents on social media, calling the drop one of the worst days in history caused by his political rivals. Meanwhile, newly empowered Democrats promised swift action. Senator Bernie Sanders posted on X calling for an immediate national data centre moratorium. Texas' Democratic governor-elect Gina Hinojosa also pledged a halt to new data centre builds.

Tech executives admitted they were unprepared for the public backlash against data centre construction. At the WSJ Tech conference in Napa, California, OpenAI president Greg Brockman and Meta president Dina Powell McCormick both conceded that the sector must do far better in winning over local communities.