Gathering AI storm clouds doom tech stocks to darkest day in a year

Nov 5 (Reuters) – Big tech stocks slumped Thursday, putting them on track for their biggest decline since the “Liberation Day” rout last year, the most significant shakeout yet in what has been a punishing autumn for the AI trade.

The Nasdaq 100 index was set for market-value declines exceeding $2 trillion on investor fears that the Democratic Party’s sweeping midterm victory could stall AI infrastructure expansion and force a chaotic reckoning for smaller firms whose capacity to raise funds has already been limited by higher interest rates and tighter financial conditions.