U.S. technology shares fell Thursday as investors sold chipmakers and other AI-linked names after this week's midterm elections, according to The Wall Street Journal and The Guardian^1,2.

WSJ live coverage said the Nasdaq was sinking as traders retreated from AI trades, with the tech-heavy index on track to close in a correction as investors weighed a possible slowdown in data-center construction under Democratic leadership¹.

The Guardian also reported a steep Nasdaq drop after the midterms and framed the session as investors betting on a slower AI build-out².

Chip and related names led the decline in WSJ's account. It cited Nebius Group down 16%, CoreWeave down 12%, Nvidia down 8%, and the PHLX Semiconductor Index down almost 10%¹.

WSJ said hyperscalers were giving back Wednesday's gains, with Microsoft and Meta lower, and that Oracle fell 7% as investors tied the company to data-center expansion risk¹.

Both outlets described the selling as a reversal after Wednesday's rally^1,2. WSJ said investors had first liked the idea that large cloud companies might spend less cash, then sold those names as the AI infrastructure trade unwound¹.

WSJ reported that OpenAI leaders had discussed whether election results would force a reset of next-year data-center capacity plans, a point it tied to Oracle's exposure¹. Paisley Nardini, head of investment strategy at Tema ETFs, told WSJ that the market had rewarded hyperscalers too much the prior day¹.

WSJ also noted overseas pressure, including a drop of more than 5% in South Korea's Kospi¹. The Guardian said an early European rally faded².

Intraday percentages differed between the live WSJ blog and The Guardian's later write-up, and neither source had a final U.S. close at the time of filing^1,2.

Sources

1. WSJNasdaq Sinks 5% as Investors Retreat from AI Trade After ElectionNov 5, 1:00 PM
2. The GuardianUS tech shares fall sharply as investors bet on AI slowdown after Democrats’ election triumphNov 5, 1:44 PM

Read the original at WSJ ↗