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Tech Stocks Plunge Worldwide Over AI Slowdown Fears

technologyNov 6, 2026·372 words·3 min read

Technology shares suffered steep losses around the world after the US midterm elections raised fears that the artificial intelligence (AI) boom could slow down. On Thursday, the tech-heavy Nasdaq Composite index fell by more than 5.5%, its worst day in 18 months. The slide pushed the index into "correction territory", meaning it is now more than 10% below its recent high. The Guardian reported that over $2 trillion was wiped off its value, while the BBC, citing Dow Jones data, put the loss at around $2.5 trillion.

Why did this happen? In Tuesday's elections, the Democrats won control of both parts of Congress. Many of them want to slow the building of data centres. These are huge buildings that power AI. In many places, there were also local votes on plans to limit them. Experts say more checks could delay these projects and make them more expensive. Some investors were already worried that the huge spending on AI may never make money.

People reacted in different ways. President Donald Trump blamed his political opponents. Senator Bernie Sanders asked for a temporary stop to data centres. Greg Brockman, the president of OpenAI, said tech companies must work closely with local communities. One expert said the fall was much too big, but markets need to calm down before they can recover.

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