AI Stock Rout Deepens as Election Fears Meet Forced SellingAI Sell-Off Shows the Cost of Unchecked Tech ExpansionElection-Driven AI Fears Hit Stocks Despite Limited Market Damage
U.S. technology stocks plunged on November 5 as investors weighed Democrats’ election gains and the prospect of tighter data-center rules, while leveraged investors faced pressure to sell. The Nasdaq fell 5.52%, and nearly $3 trillion was erased from S&P 500 companies.On November 5, technology stocks plunged as investors reacted to Democrats’ election gains and the prospect of tighter rules for data centers. Borrowed-money bets intensified the decline, wiping trillions from company values.Technology stocks tumbled on November 5 as investors feared Democrats’ election gains could bring tighter data-center rules. The losses were magnified by leveraged investors, though the broader market remained far from bear-market territory.