US AI stocks slide as data-centre scrutiny concerns grow

US technology shares fell on Thursday, November 5, after a post-election rally, as investors weighed possible greater scrutiny of AI data-centre projects following the midterm elections, according to NZ Herald’s AFP report. The report also cited a recovery in oil prices as a factor weighing on equities.

How far US markets fell

The Nasdaq Composite fell more than 5% in late-morning New York trading before paring its losses, according to AFP. In an earlier snapshot at 9:57 a.m. Eastern Time, Reuters put the index down 3.09% at 24,941.44. The National reported it was down 5.43% at 1:03 p.m. Eastern Time, alongside a 4.16% fall in the S&P 500 and a drop of more than 1,700 points, or 3.25%, for the Dow Jones Industrial Average. These are readings taken at different times during the session.

Why investors focused on data centres

Investors were concerned that Democrats’ election victory could bring greater scrutiny of AI data-centre projects, Reuters reported. Swissquote Bank analyst Ipek Ozkardeskaya said the Trump administration’s push for AI development could be scaled back. The National likewise described investors weighing whether Democratic control of Congress would mean more oversight or regulation of data-centre construction.

Some midterm winners had pledged to slow or restrict new data-centre projects, including through possible moratoriums, AFP reported. Those pledges had not established that restrictions were enacted. The reports attributed the share declines partly to investor concerns about the election and data-centre plans; they did not establish those concerns as the sole cause of the market moves.

The market reaction extended beyond the United States: AFP reported that European markets, which initially rose after the election results, ended mixed, with Frankfurt and London closing lower, while Seoul’s market fell more than 5%.