businessLIVE
Nasdaq Enters Correction as Midterm Results Stoke Fears for AI Data Center Growth
Nasdaq Enters Correction as Midterm Results Stoke Fears for AI Data Center Growth
The stock market tanked on Thursday amid concerns that a shift in congressional political control following the U.S. midterm elections could slow the construction of data centers that power artificial intelligence services. Stocks sank across the board, but technology companies with a hand in the AI sector were hit especially hard. The Nasdaq Composite Index tumbled 1,422 points, or 5.5%, to close at 24,315.
Latest updates
Nasdaq Enters Correction as Midterm Results Stoke Fears for AI Data Center Growth
The tech-heavy Nasdaq Composite fell into a correction on Thursday as U.S. stocks sank across the board. Investors weighed how Democrats' wins in the U.S. midterm elections could shift political control of Congress. The main concern is that a change in congressional control could slow construction of the data centers that power artificial intelligence services. Technology companies with a role in the AI sector were hit especially hard, while the broader market also declined. A correction is generally understood as a drop of 10% or more from a recent peak, a threshold the Nasdaq has now crossed.