Shares of artificial intelligence companies fell significantly in US markets following substantial Democratic gains in the midterm congressional elections, which also included a victory for the governor of Texas, amid the Democratic Party adopting positions supporting stricter regulations on the construction of data centers.
US news network CNN reported on Wednesday that futures for the Nasdaq 100 index, along with shares of several AI-linked companies, declined, as investors grew concerned that local restrictions on building data centers could delay major projects in states experiencing significant expansion in this sector.
Decline in Indices and Stocks
Futures for the Nasdaq 100 index, which includes the largest technology companies, fell by 0.8%, more than double the decline in Dow Jones Industrial Average futures. Additionally, the "State Street Technology Select Sector SPDR" ETF, which tracks the technology sector, dropped by 2% on the "Robinhood" platform.
Losses for Data-Linked Companies
Companies most closely tied to the data center sector recorded larger losses. Shares of "CoreWeave," a high-risk cloud computing company that relies on borrowing to fund data center construction, fell by 7% on the "Robinhood" platform. Competitor "Nebius Group" shares dropped by 4%, while shares of "SpaceX," linked to Elon Musk, fell by 6%, and "Oracle" shares declined by 4% on the same platform.
Democratic Control of Congress
The Democratic Party won the US midterm congressional elections held yesterday, regaining control of the House of Representatives and seizing a Senate majority from Republicans after winning seven seats previously held by the Republican Party, a shift confirmed by the Associated Press in its election result updates.
Source: Syrian Arab News Agency (SANA)
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