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Wall Street sees biggest market cap drops ever after midterm bloodbath for GOP
US shares suffered record single-day falls in market value on Thursday, as investors reacted to the Democrats’ sweep in the midterm elections and concerns that the new Congress could slow data-centre projects. The sell-off wiped out the Dow’s post-election gains and hit major technology and AI-related companies particularly hard.
S&P 500 companies lost $2.9 trillion in value and Nasdaq-listed companies $2.5 trillion, both records, while the Dow fell 1,833 points, or 3.44%. The seven largest technology firms lost nearly $1.04 trillion combined; Nvidia alone shed $374 billion. Chipmakers, AI-computing providers and data-centre operators also fell sharply, with the semiconductor ETF down more than 12%.
In short
- S&P 500 and Nasdaq firms saw record market-value losses.
- The Dow fell 1,833 points, erasing its post-election rally.
- AI and data-centre stocks led the sell-off.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters of the market reaction may argue that investors were reasonably pricing in the risk that a Congress controlled by Democrats would scrutinise or delay data-centre projects, creating uncertainty for companies whose valuations depend on rapid AI expansion. The sharp falls could reflect a reassessment of expected growth and policy risk rather than a judgement on the election result itself.
The case against
Critics may argue that treating the election outcome as a threat to investment overstates what a new Congress can or will do, and that a record sell-off risks amplifying uncertainty before any policy changes are known. They may also see the losses as evidence that valuations in technology and AI had become vulnerable, making the election a trigger for a broader correction rather than its sole cause.
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