Election 2026LiveSenate54 Dem · 44 Rep · 2 to callHouse254 Dem · 162 Rep · 19 to callGovernors28 Dem · 20 Rep · 2 to callUpdated 09:07 ET · AP race calls
ABRAnews Three sides to every story.
Economy & Your Money

AI stocks plunge after Democrats' midterm sweep, then partly rebound

The Nasdaq fell 5.5 percent in one day on worries about data center limits, and AI stocks recovered some losses Friday.

12 news outlets reported this
Liberal4 outletsData center backlash at the polls moves marketsCenter5 outletsElection swings, AI worries and mixed economic signalsConservative3 outletsAI-driven selloff erases post-election gains
Published 4 min readMoney and daily life
Overview

Democrats won sweeping victories in the US elections on Tuesday and took control of both chambers of . Stocks rallied the next day, with the Dow up more than 1,500 points. On Thursday the Nasdaq fell 5.5 percent as investors worried the new Congress could limit AI data centers and slow AI spending.

Tech stocks recovered some of those losses on Friday. According to CBS News, voters passed at least 44 of 47 restricting data centers, with a few still pending. Texas governor-elect Gina Hinojosa, who beat Republican incumbent Greg Abbott, has promised to halt new data center construction until more safeguards exist.

CBS News reports that President Trump posted that he is "100% in favor" of AI. He vowed to work with states that want data centers, saying they would "become RICH." Courthouse News reports that October's jobs report showed 165,000 jobs added, while two business surveys show price pressure that might push the toward a rate increase next month.

Capital Economics markets economist Joe Maher wrote that it remains to be seen whether the shock derails the AI boom, but that it "strengthens our sense that the boom is in its final innings." Citizens Financial's James O'Day says he believes the market will go higher.

Key figures
  • 5.5 percent Nasdaq's one-day drop on Thursday — The Boston Globe
  • at least 44 of 47 data center restriction measures passed by voters, per CBS News — CBS News
  • 1,570 points Dow's surge the day after the midterms, per Courthouse News — Courthouse News
  • 484 points Dow's loss for the week, per Courthouse News — Courthouse News
  • 165,000 jobs added in October, per Courthouse News — Courthouse News

Three sides of the story

Liberal4 outlets

Data center backlash at the polls moves markets

The Boston Globe says the market took investors on a "wild ride" and quotes MFS strategist Rob Almeida, who warns the AI selloff could deepen and sees parallels to the 2007 and 2008 housing bust. It also gives Citizens Financial's James O'Day: "I genuinely believe this market is going to go higher." A second Globe piece tracks how Rhode Island's listed companies fared.

CBS News ties the swing to the data center backlash: voters passed at least 44 of 47 restriction measures, Texas's Gina Hinojosa wants a halt, and Georgia's Democratic governor-elect says she would sign an order to pause construction. CBS analyst Jill Schlesinger calls the selloff "a repudiation of the AI story." A Guardian editorial argues "the political bill for the AI boom is falling due," says the sell-off "may not be a bad thing" and calls Trump "the other big loser."

Center5 outlets

Election swings, AI worries and mixed economic signals

Courthouse News, under "Blue wave lifts boats on , then sinks them," gives the week's losses: the Dow down 484 points, the S&P 500 down 204 and the Nasdaq down 858. It adds a jobs report showing 165,000 jobs added and surveys pointing to persistent that could prompt the Fed to raise rates. It quotes Tower Bridge's Christopher Gildea on fiscal standoffs and Northlight's Chris Zaccarelli, who says datacenters "will get built" if there is a business case.

BBC News asks whether the AI rush is ending or "simply a reality check," cites a Gallup poll in which 71% of Americans would oppose a data centre in their community, and quotes Arm co-founder Tudor Brown: "There is a natural floor to this." UPI reports Seoul's KOSPI fell 5.28 percent to 5,383.80, with analyst Kim Seok-hwan saying the "blue wave" hit it. Forbes' headline says tech billionaires gain as stocks partially recover.

Conservative3 outlets

AI-driven selloff erases post-election gains

The Daily Caller headlines an "AI-Induced Bloodbath" and says Wall Street had its worst selloff since April 2025. Citing AP, it reports the S&P 500 fell 4.4% to 7,353.73 and the Dow dropped 1,833 points. Also per AP, Nvidia lost 9.3% on the day and Advanced Micro Devices fell 17.3%.

It cites a UBS analysis, via Reuters, saying about 30% of projected 2028 US data-center capacity additions could face disruption from potential construction pauses. The piece says losses spread to banks and manufacturers, that a sharp S&P 500 decline can reduce retirement portfolios, and that the major indexes remained higher for the year, with the S&P 500 up approximately 7.4%. The Washington Times headline says AI stocks "halt their brutal, worldwide sell-off" as Wall Street trims its weekly loss.

It reports AI stocks bouncing back Friday while the rest of the market is mixed.

What a side did not mention
  • Conservative outlets did not mentionOn Friday President Trump restated his full support for AI and its expansion in the states. Reported by CBS News, BBC News, Newsweek, UPI, UPI
  • Conservative outlets did not mentionOctober's jobs report, released on Friday, showed 165,000 jobs added, more than analysts expected. Reported by CBS News, BBC News, Courthouse News
Where outlets disagree
Money and daily life

The Daily Caller says retirement funds and plans often track the S&P 500, so a steep fall can cut the value of those portfolios, though results depend on what each investor holds. CBS News analyst Jill Schlesinger says the volatility is not spreading into the economy yet and advises retirement investors to stick with their game plan.

All sources: 19 articles from 12 outlets

Liberal (8)

Center (8)

Conservative (3)

Related
US Politics · Elections 2026

Guardian: Cost of living is a top worry for voters as midterms near

The Guardian cites a long Ohio county strike and union leaders, while The New York Times says many voters blame President Trump's policies for inflation.

41 news outlets reported this · Liberal outlets only
1 min
Midterm elections

US elections halfway through a president's four-year term. The whole House, a third of the Senate and many governors are elected. In 2026 Election Day is November 3.

All terms →
Congress

The US parliament: the Senate and the House of Representatives. A bill becomes law when both pass it and the president signs it.

All terms →
Ballot measure

A law or constitutional change that voters approve or reject directly at the polls, alongside the candidates. Names vary by state: proposition, initiative, referendum, amendment.

All terms →
Federal Reserve (the Fed)

The central bank of the United States. It sets the key interest rate, which moves the rates on loans, mortgages and savings.

All terms →
Wall Street

A street in New York where the stock exchange stands. In the news it means US financial markets and the big banks and investment firms as a whole.

All terms →
Inflation and the CPI

How fast prices rise. In the US it is measured by the consumer price index, published monthly for a basket of goods and services. “Core” inflation leaves out food and energy, whose prices swing the most.

All terms →
401(k) and IRA

Retirement savings accounts with tax breaks. A 401(k) comes through an employer, which often adds money of its own, and an IRA is opened by the saver. Taking money out before age 59½ brings a penalty.

All terms →