Wall Street panic after the Democrats' victory. Investors are fleeing the technology market

Investors decided to make a sudden exit from shares of technology companies. The reason is growing concerns about the future of data centers and investments in the artificial intelligence sector. The fear was fueled by statements from famous Democratic Party politicians, such as Senator Bernie Sanders, who even publicly proposed a national moratorium on the expansion of data centers.

Indexes below the line - the biggest blow since April 2025

The main US stock indexes recorded their worst results since spring 2025 on Thursday. Dow Jones Industrial fell 3.44%. (1,833 points), closing at 51,523.06 points and losing all the growth achieved after Wednesday's elections. The S&P 500 fell by 4.36%, and the Nasdaq Composite - by as much as 5.52%, entering the so-called correction zone, i.e. exceeding the 10 percent limit. decline from recent historical records.

Other important indices also experienced declines. The Russell 2000 lost 4.46%, while the VIX - the so-called fear - dropped by almost 70 percent, which clearly illustrates the nervousness prevailing on the market.

The AI industry under the pressure of political change

The Democrats' victory in both houses of Congress and the key gubernatorial elections caused a real storm in the new technology industry. Shares of artificial intelligence leaders and chipmakers - Broadcom, Nvidia, Oracle - recorded single-digit but painful declines. Qualcomm, despite good sales in the third quarter, lost as much as 10%, and the iShares Semiconductor ETF fund - over 10%, which is the worst result since the outbreak of the pandemic.

As experts explain, investors are holding off on decisions while waiting for clarification on what actions the new Congress will take regarding AI and infrastructure investments. After two years of intensive support for this sector by the Trump administration, the current government may implement restrictions and increase control over technological investments.

The market is in shock - the sale spreads beyond technology

The technological bloodbath also spread to the industrial and financial sectors. Shares of giants such as Caterpillar and JP Morgan lost several percent each, and Boeing and Nike also recorded declines.

Experts have no doubt: the Democrats taking greater control in Congress and the risk of introducing new regulations resulted in a widespread sell-off in American markets.

Labor market and oil

In the shadow of the stock market turmoil, there were also reports about the labor market - the number of new unemployed in the US slightly exceeded forecasts, which may be a signal that the economy is still holding up. In turn, on the commodity market, oil prices are rising: WTI and Brent contracts are gaining several percent each, signaling that not all assets follow the downward trend from Wall Street.