The Democratic victory worries the data center sector and sinks the Nasdaq with an investor exodus from AI companies

Markets initially reacted positively to the Democrats' midterm election victories, but fears resurfaced regarding the AI sector. Stocks related to data centers and AI plummeted, erasing previous gains. The S&P 500 fell over 3.2%, marking its worst day since April 2025. The Dow Jones dropped more than 2.07%, while the Nasdaq Composite saw a significant decline of 4.9%. Nvidia's shares fell 6.3%, and CoreWeave lost 10%. Global markets, particularly in Asia, faced pressure due to concerns over potential new regulations affecting AI data centers. The Kospi index in South Korea dropped 5.3%. These fluctuations highlight the significant impact of AI companies on Wall Street, especially Nvidia, which has a major influence on the S&P 500.