Nasdaq plunges 5.5% on AI rout after Democratic midterm sweep

The Nasdaq fell 5.52% on Thursday, its worst day since April 2025, entering correction territory as investors dumped AI-related stocks on fears that a Democratic landslide in the U.S. midterms could slow data-center deployment. The selloff reflects a repricing of AI capex expectations amid potential regulatory and policy shifts, though the exact policy levers remain uncertain.

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