Daniel Wolfram
A Democratic blue tusnami midterm election sends shockwaves through global markets with pledges to rein in Big Tech.
Panic ripped through global trading floors last week as technology shares suffered their steepest slide in months.
The tech-focused Nasdaq Composite sank 5.5 percent on Thursday, while the S&P 500 lost 4.4 percent.
Trillions of dollars vanished in hours. The blue tsunami during the American midterm elections caused a panic on the global stock market.
Trillions were wiped out across worldwide equities.
The rout followed a decisive blue wave during the midterm vote, which will give Democrats control over both chambers of Congress. Global investors suddenly realized the political landscape had changed.
Donald Trump pointed the finger directly at his opponents over the stock market reactions.
On Truth Social, the president claimed financial markets faced “one of the worst days in history based on the results of the election,” adding, “Remember, it wasn’t Republicans, it was Dumocrats.”
“I do not work for data centers”
As The Guardian reported, newly elected officials ran on promises to rein in unchecked power in the AI industry. Democrat Mark Warner of Virginia argued digital safety was “too important” to hand over to “tech bros,” while Ohio newcomer Sherrod Brown declared, “I do not work for data centers.”
That political friction carries immediate economic consequences. Roughly four in ten planned American server hubs sit in regions where winning governors pledged construction freezes, according to research firm Cleanview.
JonesTrading analyst Michael O’Rourke told Reuters that curbing this massive building spree has become the defining takeaway from the ballot box.
Stocks in disarray
Tech giants’ stocks nosedived. Nvidia’s stock dropped over nine percent, erasing roughly $400 billion in market value, while rival chipmakers AMD and Micron each dropped more than 17%, TheStreet reported.
Tesla also plunged 11% after Elon Musk funneled nearly $450 million toward getting Republicans in previously AI-friendly states elected, but to no avail.
By Friday morning, the pain rippled into Asia. Japan’s Nikkei 225 tumbled 5.7%, South Korea’s Kospi slumped 7.4%, and Samsung Electronics fell nearly 8%.
The golden era of unchecked digital expansion was just hit with a reality check.
