Fastrack · Chipmakers Sink as AI Stocks Fall After Midterms

U.S. stocks rallied Wednesday after Democrats won control of Congress in the midterm elections. Chip and AI stocks then fell globally Thursday.

1,500-plus points: the Dow's gain Wednesday; the S&P 500 rose 1.6%.
24.5% drop for Trump Media & Technology Group on Wednesday.
8.7% plunge in Brent crude Wednesday, to $94.62 a barrel.
5.3% fall in South Korea's Kospi Thursday, led by chipmakers.

Why it matters: Traders are betting a Democratic Congress means tighter oversight of AI buildouts, pressure to end the Iran war, and less federal spending.

Defense stocks fell: Lockheed Martin dropped 6.9%, Northrop Grumman 4.5%.
Goldman's Alec Phillips sees moratoria potentially hitting about 45% of planned data center expansion.
Gold topped $4,100 an ounce, its largest two-day jump since April.

The story so far

80 steps · since Oct 10

Oct 10–29
Oct 3010:19 AMTrump Holds Final Midterm Rallies in Iowa and Kansas46 sources
Oct 30–Nov 1
Nov 13:29 PMVance Rallies in Ohio and New York on Election Eve73 sources
Nov 1
Nov 26:37 AMTrump Delivers Closing Pitch at Reflecting Pool Before Midterms68 sources
Nov 2–3
Nov 38:46 PMStocks Surge as Democrats Sweep Midterm Elections55 sources
Nov 4
Nov 411:29 PMChipmakers Sink as AI Stocks Fall After MidtermsYou are hereLatest

How 14 sources split on this story

Source landscape

Factuality

High

Mixed

Low

Strong LeftLeftLean LeftCenterLean RightRightStrong Right

Political Bias

Coverage by lean% of 14 sources

14 sources · 20 articles · 57% Center coverage

Where they split: Coverage differs on emphasis: whether the takeaway is a broad market rally or a selloff in AI and chip stocks.

Center coverage, 8 sources: The center frames it as a broad global rally after the midterms, offset by heavy AI-related selling.

CTV News6hWorld shares mostly gain after U.S. midterm elections as AI-related stocks sink MarketWatch23mIs this ‘the big one’ for the stock market? Wall Street sounds off as tech plunges.Bloomberg2hChips Selloff Worsens as Fears About AI Trade Grip Stock Market Financial Times3hMarkets live: US tech stocks slide in wake of Democrats’ midterm win Associated Press20hHow major US stock indexes fared Wednesday 11/4/2026 Axios1hNasdaq plummets toward correction territory CNBC4hMarkets cool after the monster midterm rally with Musk's stocks under pressure Forbes2hChipmaker Selloff Deepens Amid Post-Election Concerns For Future Of Data Centers

Left coverage, 3 sources: The left frames the story as markets reacting to a Democratic wave, with gold rising and AI stocks falling.

The Independent2hAI and data center-linked stocks tumble as 'blue wave' fuels concerns ABC News1hDow plunges 1,200 points, shedding most of midterm results stock rally The New York Times1hStocks Erase Post-Midterm Elections Rally, Dragged Down by Tech

Right coverage, 3 sources: The right frames it as a blue-wave purge of chip stocks driven by fears of a data center backlash.

ZeroHedge25mThe Nasdaq Is Crashing: This Is Getting Ugly Citizen Free Press3hStock market trading, live updates — Nasdaq down 3 percent.Newsmax5hNasdaq Futures Slip as Chip, Data Center Stocks Fall

What’s next: The new Democratic-led Congress takes control in January.

Musk's companies are possible investigation targets for a Democratic Congress.
The Bank of England raised rates to 4% and signaled more hikes if the Iran war continues.
Will a Democratic Congress actually move to restrict data center construction?
Will congressional pressure change the Trump administration's approach to the Iran war?