US tech selloff erases post-midterm gains
Nasdaq drops 5% as a chip selloff bleeds into other sectors of the economy.
The tech-heavy Nasdaq suffered a 5% drop on Thursday, undoing recent post-midterm gains and pushing the index into correction territory. The decline was primarily driven by a chip selloff, which spilled over into other sectors of the economy. Investors were concerned that Democrats' midterm victories in Texas, Georgia, and Ohio might slow the AI buildout, as these districts accounted for nearly 40% of planned US data center capacity.
While some analysts, such as those at JPMorgan, maintain that the AI boom will continue, they warn that it could become more expensive, slower, and more concentrated in the future. This sharp sell-off highlights the sensitivity of the tech sector to political developments and shifts in investment priorities.
Brief written by urgent.news from Semafor's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
