Symbolic imageNasdaq slides as AI and chip stocks extend losses after Democratic midterm win
The Nasdaq fell sharply on Thursday as AI and chip shares kept sliding after the Democrats' midterm victory. Investors fear tougher scrutiny of data-center expansion.
The Financial Times put the Nasdaq's loss at 6%, while Handelsblatt's intraday reports had it four percent lower at one point and more than five percent down at its worst. Bloomberg reported further falls in chip stocks, Tesla and Bitcoin, which hit a seven-week low, and said SpaceX default risk reached a fresh peak. The Wall Street Journal wrote that the AI selloff extended while Treasurys gained. Most of these pieces are paywalled, so the figures rest on their headlines.
Asia led the selling
Tokyo's Nikkei fell on Thursday as chip-equipment makers Advantest and Tokyo Electron dropped 14.7% and 9.4%. Nomura Securities strategist Wataru Akiyama said capital is moving out of AI and semiconductors because of a growing view that Democratic wins will delay data-center projects. Handelsblatt reports that 25 of 33 Tokyo sector groups rose, and Brent fell to about $95 a barrel, its first drop to that level since early October.
Data centers on the ballot
Nikkei Asia notes that voters opposed nearly all of 41 ballot measures across 10 US states concerning AI data centers. Its currency report adds that slower US AI investment could favour the yen.