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Nasdaq loses $2.5 trillion in market value following US elections
The Nasdaq Composite index fell 5.5% on Thursday, marking its largest single-day decline since April 2025 and erasing $2.5 trillion in market value. The sell-off was driven by investor fears that the Democratic Party's significant victories in the US midterm elections could stall the expansion of artificial intelligence (AI) infrastructure.
Investors expressed concern that new political leadership, particularly at the gubernatorial level, may increase opposition to data center construction due to potential impacts on electrical grids and water supplies. Analysts from UBS estimate that up to 30% of projected data center capacity increases through 2028 could be at risk due to possible construction pauses.
The downturn heavily impacted semiconductor and neocloud companies. The Philadelphia SE Semiconductor index dropped 12%, with Nvidia falling 9% and Advanced Micro Devices losing 17%. Other notable declines included Microsoft (3.6%), Amazon (2.2%), Alphabet (2.2%), CoreWeave (10%), and Nebius (15%).
The Nasdaq Composite has now entered correction territory, having lost nearly 12% since its record high on October 6. Market volatility, as measured by the VIX, saw its largest increase since December 2024. Analysts suggest the magnitude of this decline may impact the timing of Anthropic’s anticipated initial public offering (IPO) this fall.
Entities
Advanced Micro Devices · Anthropic · Nasdaq · Nvidia · UBS
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Advanced Micro Devices shares fell 17%. brasilemfolhas.com.br
- [○ 1 SOURCE] UBS analysts estimate 30% of projected data center capacity increases by 2028 could be at risk. brasilemfolhas.com.br
- [● 3 SOURCES] The Nasdaq Composite has lost nearly 12% since its record high on October 6. brasilemfolhas.com.br · www.cnnbrasil.com.br · www.infomoney.com.br
- [● 3 SOURCES] The decline was driven by fears that Democratic victories in US midterm elections could stall AI infrastructure expansion. brasilemfolhas.com.br · www.cnnbrasil.com.br · www.infomoney.com.br
- [● 2 SOURCES] The magnitude of the decline may affect the timing of Anthropic’s planned IPO this fall. brasilemfolhas.com.br · www.cnnbrasil.com.br
- [● 2 SOURCES] $2.5 trillion in market value was eliminated from the Nasdaq. brasilemfolhas.com.br · www.infomoney.com.br
- [● 3 SOURCES] The Nasdaq Composite index fell 5.5% on Thursday. brasilemfolhas.com.br · www.cnnbrasil.com.br · www.infomoney.com.br
- [○ 1 SOURCE] Nvidia shares fell 9%. brasilemfolhas.com.br