Explainer

Why are tech stocks sliding just days after Democrats won Congress?

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Stocks on Wall Street in New York sold off two days after Democrats won both chambers of Congress. Investors fear a Democratic Congress could slow data centers and tighten AI rules.

Wall Street

New York

Tech-heavy stocks fell hardest, with the Nasdaq composite down more than 5 percent. Chip stocks, the biggest AI winners, led the drop.

5%

Nasdaq composite dropSource: Washington Post · 05.11.2026

UBS analysts estimate about 30 percent of the extra US AI capacity planned by 2028 could be put at risk. That is a forecast about future projects, not confirmed cancellations.

30%

Planned US AI capacity at risk (UBS estimate)Source: Xataka · 05.11.2026

The indexes last fell this hard in one day when Trump announced global tariffs in April 2025. The next date to watch is January 2027, when Democrats take control of Congress. Trump has said he will use his veto, which will shape how far AI bills can get.

Next deciding date
  1. April 2025Trump global tariffs announced
  2. January 2027Coming upDemocrats take control of Congress

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The story

Tech stocks slide as Democrats' midterm wins raise fears over AI rulesRead the article

Based on reports by