The Nasdaq Plunges 5%. What the Data Center Crash Means for Investors

The Nasdaq dropped 5.5% following midterm election results, as investors feared political backlash against data center construction, particularly in Texas where the governor-elect proposed a temporary moratorium. Semiconductor stocks collapsed, with the VanEck Semiconductor ETF losing 11.2%. However, analysts argue this reaction is likely an overreaction, as AI demand remains strong and any slowdown would likely shift construction abroad rather than eliminate growth.