Tech stocks down today: Nvidia, SpaceX, AMD and more updates

What the market sell-off signals about AI and data centers

This article explains why stocks fell after a strong rally and how concerns about AI investment, data center construction and potential regulation shaped investor reactions. Readers can compare the reported market declines with the trading thresholds that could pause or end trading.

Market claim: The S&P 500’s circuit breakers pause or end trading when the index reaches specified decline thresholds.

• Market declines: The Dow fell 1,600 points, about 3 percent, on Thursday, while the Nasdaq dropped approximately 5 percent.
• Circuit breakers: A 7 percent S&P 500 decline triggers a 15-minute trading pause, while declines of 13 percent and 20 percent trigger further restrictions.
• AI concerns: Investors worried that data center construction could slow and that Democratic lawmakers might increase regulation of the AI industry.
• State influence: The article says Democratic governors taking office in 2027 could influence whether major data center projects proceed.

After a huge stock market rally on Wednesday following the decisive Democratic win in the U.S. midterms, stocks tumbled sharply on Thursday as investors feared a slowdown in data center construction and the AI industry as a whole.

The Dow Jones Industrial Average dropped 1,600 points on Thursday, about 3 percent of its value, according to CNBC. The S&P 500, a stock market index of large companies, and the tech-centered Nasdaq index also dived on Thursday, with the latter dropping approximately 5 percent, the New York Times reported.

The massive drops in the stock market indexes even stoked fears of a Wall Street trading freeze. The S&P 500 drop reached 3.8 percent at one point on Thursday; at 7 percent, a market-mandated circuit breaker kicks in and forces a pause on all trading for 15 minutes.

The circuit breakers are intended to halt severe market crashes. A 13 percent drop in the S&P 500 leads to another forced freeze on trading, while a 20 percent crash ends trading for the day.

Chipmakers like Nvidia and Qualcomm took a big hit on Wall Street, as investors anticipated more regulation of the AI industry from Democratic legislators taking power in January.

An X post from Bernie Sanders may have contributed to investor fears, with the Democratic senator calling for a national data center moratorium (in all caps) late on Wednesday.

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Shares of Tesla and SpaceX, both run by Republican mega-donor Elon Musk, dropped on Thursday for the second day, with potential regulatory pressure and investigations on the horizon.

For tech companies, it may not just be the incoming Senate and House that will expose them to more scrutiny, but the wave of Democratic governors taking office in 2027. Many of those governors-elect have spoken out against data centers and will be key deciders on whether construction of Silicon Valley’s mega-projects moves forward.

“In many ways, what happened in state-level races around the U.S. are arguably just as important,” as the Senate and House elections, Kent Fung, vice president of market intelligence at Fundstrat, told the Times. “Not just to Americans, but to investors.”

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How do S&P 500 circuit breakers work?

S&P 500 circuit breakers temporarily halt trading when the index falls by specified percentages. The article identifies thresholds of 7 percent, 13 percent and 20 percent.

Trading claim: The circuit-breaker thresholds determine whether trading pauses briefly or ends for the day.

• 7 percent decline: Trading pauses for 15 minutes.
• 13 percent decline: Another forced trading pause occurs.
• 20 percent decline: Trading ends for the day.

The article reports that the S&P 500 fell as much as 3.8 percent on Thursday, below the 7 percent threshold described for a trading pause. The stated thresholds distinguish a temporary pause from a halt for the rest of the day.

Why did AI and data center concerns weigh on stocks?

Investors feared that data center construction could slow and that new Democratic lawmakers might regulate the AI industry more closely. The article also points to Bernie Sanders’ call for a national data center moratorium as a possible factor in those concerns.

Investor claim: Expectations about data center projects and AI regulation contributed to pressure on technology stocks.

The reported declines included chipmakers Nvidia and Qualcomm, as well as Tesla and SpaceX. The article connects the sell-off to concerns about possible regulation and investigations, not to a confirmed policy change.

Could state governments affect data center projects?

Yes. The article says governors-elect in several states had spoken against data centers and could influence whether major projects move forward.

State policy claim: State governors can be important decision-makers for data center construction projects.

The article’s account of investor concerns extends beyond control of the U.S. Senate and House to state-level races and the governors taking office in 2027. Fundstrat vice president of market intelligence Kent Fung described state races as significant to both Americans and investors.

What happened to the major stock indexes on Thursday?

The Dow Jones Industrial Average fell 1,600 points, about 3 percent, and the Nasdaq dropped approximately 5 percent. The S&P 500 fell as much as 3.8 percent during the day.

Index claim: The article reports different declines for the Dow, Nasdaq and S&P 500 on Thursday.

The reported figures describe index moves during the sell-off; they do not establish that every company in each index fell by the same amount. The article attributes the market reaction to investor concerns about AI, data center construction and possible regulation.

Did the market reach the trading-pause threshold?

No. The reported S&P 500 decline reached 3.8 percent, while the article says a 7 percent decline triggers a 15-minute pause.

Threshold claim: The reported 3.8 percent drop was below the stated 7 percent circuit-breaker level.

Why were chipmaker stocks affected?

The article says investors anticipated more regulation of the AI industry from Democratic legislators taking power in January. It reports that Nvidia and Qualcomm shares took a hit amid those expectations.

Chipmaker claim: The article links pressure on Nvidia and Qualcomm shares to investor concerns about AI regulation.

Can state governors influence data center construction?

According to the article, governors-elect who have spoken against data centers could help determine whether major projects move forward. State-level decisions were described as relevant to investors as well as residents.

State decision claim: Governors can influence whether data center projects proceed in their states.