‘The blood is in the streets’: Nasdaq plunges as US midterms rattle SpaceX and Nvidia
The Nasdaq index was plunging into the red on Thursday after the US midterms rattled AI-related stocks including Nvidia, Oracle and SpaceX. The tech-heavy index, which tracks 100 of the largest non-financial companies, sank more than five per cent to around 24,416 points. Chipmakers Nvidia and Broadcom each helped lead losses down eight and nine [...]
On Thursday, the Nasdaq index plunged into the red as the US midterms rattled AI-related stocks such as Nvidia, Oracle, and SpaceX, according to <source 93ec0a92-f12>. The tech-heavy index, which tracks 100 of the largest non-financial companies, fell more than five percent to approximately 24,416 points. Chipmakers Nvidia and Broadcom were among the leading decliners, falling eight and nine percent respectively.
Tesla and SpaceX also saw sharp declines of ten percent each. Elon Musk, the CEO of SpaceX, spent around $474 million on the midterms, making him the largest single-cycle political donor in modern American history. Neil Wilson, a UK investor strategist at Saxo Markets, warned of a total momentum unwind in the market, stating, "The blood is in the streets, folks.
The fear is a total momentum unwind as Democrats pace the frontier and kybosh data centre buildout." The Dow Jones and S&P both experienced declines of 2.4 percent and 3.5 percent, respectively. Following the Democrats' seizure of control over the US House of Representatives and Senate in the midterm elections, several Democrats campaigned on concerns around AI and data centers, prompting a rotation out of tech stocks.
MRB Partners noted that a shakeout among the most speculative parts of the theme was underway, adding that the US mid-term election results would add to headwinds for big tech and the data center buildout.
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