Nasdaq 100 falls 5.5% after Democrats’ election victory — Der Spiegel

In the United States, technology stocks fell sharply after the Democrats’ victory in the midterm congressional elections. Investors fear that artificial intelligence companies will face tighter political regulation, Der Spiegel reports.

Decline in the technology sector

The Nasdaq 100 index fell by 5.5% to 26,878 points, heading for one of its largest daily declines in recent years. The broad S&P 500 index lost 3.2% and dropped to 7,444 points. The Dow Jones Industrial Average declined by 2.2% to 52,193 points.

Nvidia shares fell by 8.3% during trading, following a 3.2% decline the previous day. Advanced Micro Devices shares lost 15.9%. Shares in CoreWeave, which provides access to artificial intelligence chips through cloud services, fell by 14.9%.

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Criticism of data centers

According to the publication, the Democrats won majorities in both the House of Representatives and the Senate. This could increase political pressure on technology companies, particularly regarding the construction of large AI data centers.

Critics of such facilities point to their substantial electricity consumption, which may affect prices for households. They also cite potential problems with noise, air pollution, water shortages, and the limited number of permanent jobs. Gina Hinojosa, the Democratic governor-elect of Texas, has already called for an immediate moratorium on the construction of data centers.

The fall in technology stocks also affected the German market: Infineon shares lost more than 10%, while Siemens Energy and Hochtief shares also declined significantly. The DAX index, which had previously set a record, fell by 0.8%.