Big Tech loses a trillion dollars in a day after the Democratic win

Shares in leading tech companies plummeted on Wall Street and in Asian markets on Friday after the Democratic party's triumph in the US midterm elections, resulting in a trillion-dollar loss for the sector in a single trading day. The so-called "magnificent seven" - Apple, Nvidia and Tesla - collectively lost a staggering $1 trillion.

The tech-focused Nasdaq dropped more than 5.5%, erasing an estimated $2.5 trillion in market value, and entered a correction phase, marking a decline of at least 10% from its recent peak. The S&P 500 and the Dow Jones also experienced significant declines of 4.4% and 3.4% respectively, their worst performance since 2025. Nvidia's stock plummeted over 9%, losing more than $400 billion, while AMD and Micron fell over 17%, and Intel dropped 10.3%.

Elon Musk's companies, Tesla and SpaceX, suffered losses exceeding $300 billion. The market-wide sell-off extended to Asia on Friday, with Seoul's Kospi index dropping over 8.5%, triggering a temporary trading suspension; Japan's Nikkei fell 6%, and Taiwan's Taiex declined more than 8.3%. Chip manufacturers bore the brunt of the losses, with SK Hynix shedding more than 11.5%, Samsung experiencing a near 10% decline, and Taiwan's TSMC dropping about 8.5%.

Democratic candidates across the nation advocated for limiting the expansion of data centers, which they criticized for their water and electricity usage and impact on local utility bills. Over 50 local ballot initiatives aimed to restrict these facilities. Texas Governor-elect Gina Hinojosa announced a moratorium on their construction.

Experts warned that concerns about the returns on AI investments were colliding with fears of a slowdown in data center development. President Donald Trump blamed the market's decline on the election results, while Senator Bernie Sanders advocated for a nationwide ban on new data centers. OpenAI's CEO, Greg Brockman, admitted that the industry's reaction had taken them by surprise, emphasizing the importance of engaging with local communities.