Nov 5 (Reuters) - The Nasdaq 100 index was set to lose a whopping $1.8 trillion in stock value on Thursday as investors feared that the sweeping midterm victory of Democrats could stall the pace of AI infrastructure expansion.
The rout marked a dramatic slide from a relatively mild initial reaction in the previous session, when the index, stacked with elite tech companies, rose on hopes that an end to election-related uncertainty could improve overall sentiment.
“Wall Street badly needs a happy AI story right now,” said Matthew Tuttle, founder and CEO of Tuttle Capital Management. “We now probably have two years of nothing. Divided government, angry politics, and very little getting passed.”
They’re gonna kill AI and sell it as the Democrats fault. Might not even blow up in their face
If it’s fear of the Democrats, why was there a rally yesterday? Rothschild maneuver?
Yah I don’t get that either…but tech stocks are getting hammered today…irrational reaction per chance due to fear of the unknown? We had a hell of a run in tech under democratic control up to 2024, and arguably it continued upwards for the most part.
Fear of the unknown was Tuesday. When the future became clear before market open Wednesday, the market rallied. This is just a pullback from that over exuberance.
This is too sudden. Someone pulled a low block on the jenga tower.
You think the great ai tech circle jerk is coming to end with all their circular financing deals? Or something else?
I think it may be that, or some other high leverage clusterfuck coming undone, possibly because some major player made the wrong bet (possibly related to the outcome of the election) and is scrambling to cover its positions now.
I think we’ll see how openAI running out of money mid 2027 plays out. Likely the first domino to fall
Brutal day in the markets, sheesh.
