U.S. stocks gave back Wednesday’s post-midterm advance Thursday as technology shares led a broad decline, with the S&P 500 falling 4.4% amid concerns over data-center policy and AI valuations.
The S&P 500 closed at 7,353.73, down 334.89 points. The Associated Press said the drop was the index’s steepest daily decline since April 2025 and wiped out more than Wednesday’s 1.6% gain. The Nasdaq Composite fell 1,421.52 points, or 5.5%, to 24,315, while the Dow Jones Industrial Average lost 1,833.06 points, or 3.4%, to 51,523.06.
The Associated Press linked part of the selling to concern that Democratic election victories could bring limits on data-center construction. Before the election, Texas Gov.-elect Gina Hinojosa’s campaign called for pausing approvals until lawmakers adopted protections. Ohio Gov.-elect Amy Acton’s campaign backed a conditional moratorium. The market coverage described prospective policy risks, not a new restriction that took effect Thursday.
Investor concerns about AI had surfaced before the vote. The AP reported that investors had questioned the prices of AI-linked shares. Anadolu separately cited doubts about when heavy AI spending might produce profits and reported that the Cboe Volatility Index rose 61.89% to 26.89. Keith Lerner, a market strategist at Truist, described technology shares as facing a “buyers’ strike,” Reuters reported.
The AP said Wednesday’s rally reflected hopes that divided government would reduce the likelihood of sweeping policy changes. EconoTimes previously covered post-election losses in U.S. technology stocks. The AP has also noted that stocks have often gained in the months after midterm elections, regardless of which party wins; that longer-term pattern does not explain Thursday’s reversal. EconoTimes has reviewed studies of post-midterm S&P 500 returns.
