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Markets6 Nov, 02:30 UTCUnited States

Tech stocks slide on fears of AI curbs after midterms

Tech shares in the US dropped hard after the midterm elections. Investors fear that new leadership in Congress may hold back the build-out of data centers. Senior House Republicans have also asked Nvidia's chief executive for a briefing.

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Markets · 6 Nov, 02:30 UTC

US stocks closed sharply lower on Thursday, with technology companies leading the slide. Traders worry that if power in Congress changes hands, the building of data centers for artificial intelligence could slow down.

Markets

The worries followed Democratic gains in the midterm elections. Some investors fear a tougher approach to AI under Democrats. Headlines described the drop in tech shares as a rout of about $2 trillion.

In numbers

$2 trillionTech stock losses
Nov. 18Requested briefing date

Nasdaq Composite, the past month

24,315.00down −11.90%

Markets

Separately, three House Republicans sent a letter to Nvidia CEO Jensen Huang on Wednesday. They are Reps. John Moolenaar of Michigan, Brian Mast of Florida and Rick Crawford of Arkansas. They asked him to appear at a closed-door joint briefing on Nov. 18.

The lawmakers want to discuss concerns about Nvidia's security protocols against foreign adversaries. The letter followed reports that Huang had sent intelligence to China.

What comes next

The House Republicans have asked Jensen Huang to appear at a closed-door briefing on Nov. 18.

Nasdaq Composite24,315.00down −11.90%over 1 month

Prices can be delayed by 15 minutes or more. Past moves say nothing about future ones.

Also in this story

S&P 500down −5.95%1 month

NVIDIAdown −24.09%1 month

Who is who

Jensen HuangNvidia CEO
John MoolenaarRepublican House member, Michigan
Brian MastRepublican House member, Florida
Rick CrawfordRepublican House member, Arkansas

Background

Data centers supply the computing power for AI, and many tech companies depend on their expansion.

Where: United States
Published: 6 Nov, 02:30 UTC
Section: Markets
Markets: Nasdaq Composite, S&P 500, NVIDIA

This article is not investment advice. It was written by our automated newsroom from published reports and official statements, using only the facts in them, and not read by a person before it was published. Report a mistake
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