Major tech stocks plunge following Democratic US midterm election victories

Major technology stocks dropped sharply after the United States midterm elections sparked fears of a slowdown in artificial intelligence development. Democratic candidates won election campaigns that focused on slowing artificial intelligence, raising concerns about prospective scrutiny of data centre construction and the technology sector. [1]

The tech-heavy Nasdaq composite stock index fell by more than 5.5% at the close of trading, wiping out an estimated $2.5tn in market capitalisation, according to Dow Jones data reported by the BBC. The fall marked the worst single day for major US stock indexes since 2025, removing hundreds of billions of dollars in market value from prominent technology firms. [1]

The market reaction comes alongside existing concerns across the industry regarding whether the large expenditures on artificial intelligence infrastructure will generate sufficient financial returns. [1]

Meta Platforms is one of the major American multinational technology companies operating in the sector. Headquartered in Menlo Park, California, the firm owns social media services including Facebook, Instagram, WhatsApp, Messenger, and Threads, with advertising generating 97.8% of its total revenue in 2023. [2]