US stocks lose over $3 trn as Democrats’ midterm victory rattles Wall Street’s AI trade

US stocks suffered a massive sell-off on Thursday, wiping out more than $3 trillion in market value in a single day, according to the Financial Times. The tech-heavy Nasdaq 100 plunged 6.4% as investors grew concerned that the Democrats’ sweeping victory in the US midterm elections could slow down the artificial intelligence (AI) spending boom that has driven Wall Street’s rally this year.

The dramatic fall came after Democrats scored a major victory over President Donald Trump’s Republicans in Tuesday’s midterm elections. Investors fear that the newly elected lawmakers could introduce stricter rules for the technology industry and put the brakes on the rapid expansion of AI data centres.