The Dow Jones Industrial Average fell 3.44% Thursday, wiping out Wednesday’s gain and closing below its Nov. 3 level as Reuters and the Associated Press reported investors weighed possible curbs on data-center construction.
The index closed at 51,523.06, down 1,833.06 points from Wednesday, according to S&P Dow Jones Indices’ daily data published by the Federal Reserve Bank of St. Louis. The decline erased the Dow’s 1,569.40-point rise on Nov. 4 and left it 263.66 points, or about 0.51%, below its Nov. 3 close of 51,786.72. The daily figure reflects the market’s usual 4 p.m. ET close. Share price sets the weight of each of the Dow’s 30 components.
Reuters and the Associated Press said investors were reassessing what Democratic election wins could mean for artificial-intelligence data-center expansion. Their reports cited concern that new projects might face moratoriums or other construction limits, a potential risk for companies tied to the buildout. The reports described a possible factor in the selloff, not proof of one cause for the Dow’s move.
Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez announced the Artificial Intelligence Data Center Moratorium Act on March 25. The Senate bill, S. 4214, was read twice and referred to the Senate Committee on Commerce, Science, and Transportation; the available Senate record does not show it was enacted. Sanders said, “We need a federal moratorium on AI data centers.” Ocasio-Cortez cited electricity bills as a concern for the proposal’s supporters, while Reuters and the Associated Press reported that investors were concerned about possible construction limits, which could pose a risk for companies tied to the data-center buildout.
CNBC said technology shares also weakened and the Nasdaq Composite fell into a correction. EconoTimes previously covered retail investors’ trading during Thursday’s session.
The U.S. Bureau of Labor Statistics (BLS) scheduled its October Employment Situation report for Friday, Nov. 6, at 8:30 a.m. ET.