Stocks Plunge Amid AI Fears and Political Uncertainty

On November 5, 2026, U.S. stocks experienced significant volatility following the Democratic victories in key races during the midterm elections. The Dow Jones Industrial Average plunged by approximately 1,200 points, erasing most of the gains seen on Wednesday after the election results were announced. Meanwhile, the Nasdaq Composite Index dropped over 5%, entering correction territory for the first time since early October. This selloff was driven primarily by fears that a Democrat-led Congress would implement stricter regulations on artificial intelligence (AI) and data centers. Leading tech companies such as Nvidia, Oracle, and SpaceX saw their shares plummet, with investors concerned about potential restrictions impacting AI development and expansion of data center projects. The market rebounded slightly the following day but remained volatile due to ongoing uncertainty regarding future policy directions.