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Nasdaq heading for worst day in 18 months as Wall Street sustains widespread losses
The Nasdaq fell by up to 5% on Thursday, putting it on course for its steepest one-day loss in 18 months and pushing it more than 10% below its recent record high. Investors are concerned that Democrats’ gains in midterm elections and local votes against datacentres could lead to tougher scrutiny of AI development and slower expansion.
Technology shares led widespread losses, amid worries over the scale of AI spending and datacentre plans. SanDisk dropped 19%, Western Digital fell 16.5% and Nvidia lost 6.7%; the VIX volatility index rose 40%. The Dow fell more than 1,000 points, while Britain’s FTSE 100 closed down 0.4%, reversing a strong Wall Street rally the previous day.
In short
- Nasdaq fell as much as 5%, its sharpest drop in 18 months.
- AI and chip shares led losses across markets.
- Investors weighed whether election results could slow datacentre expansion.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A tougher review of AI development and datacentre expansion could help communities weigh local impacts, such as energy use and land demands, while ensuring investment delivers broad public benefits. Supporters may also argue that scrutiny can reduce the risk of costly overbuilding, especially when markets are already questioning the scale and returns of AI spending.
The case against
Delaying AI development and datacentre construction could weaken the competitiveness of US technology firms and slow investment in infrastructure needed to support future innovation. Investors and companies may argue that clearer, predictable rules are preferable to political uncertainty, which can unsettle markets and deter long-term projects.
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