Tech stocks slide on AI data centre worries after US vote
US stocks fell sharply on Thursday 5 Nov, led by companies tied to building AI data centres. The S&P 500 dropped 4.4 percent, its worst day since April 2025, and the Nasdaq composite fell 5.5 percent. Nvidia shares fell 9.3 percent and South Korea's Kospi index dropped 5.3 percent. Investors feared that Democrats, who won control of Congress in the 2026 midterm elections, would tighten AI rules and slow data centre construction. US President Donald Trump blamed the Democratic victory for the sell-off. On 6 Nov, the IMF's managing director said central banks would need to weigh any slowdown in AI-driven growth.
Key facts
- The IMF warned in October that a steep fall in AI investment could cut global GDP by 1.1 percent by 2028.
- Voters rejected 40 of 41 local ballot measures on data centres across 10 states on Tuesday.
- The S&P 500 technology sector recorded its largest one-day decline in more than six years this week.
- The tech sector's forward price-to-earnings ratio fell to 17.1, from above 32 in October 2025.
Summarised with AI from 5 sources · Updated 01:10Read our AI policy
Why it matters
Possible rules on AI and data centres could affect tech investment and market valuations.
What changed
Summary updated
First published from South China Morning Post, The National, CNBC, CNA and The Hindu