The US stock markets suffered a sharp decline on Thursday. At the close in New York, the Dow index registered 51,523 points, marking a 3.4 percent loss compared to the previous trading day. Trading moments earlier, the broader S&P 500 index was down 4.4 percent at around 7,354 points, while the tech-heavy Nasdaq 100 fell even harder, closing at approximately 26,630 points, a drop of 6.3 percent.
The gains that had followed the Democratic victory in the US midterms were lost again on Thursday. Shares in companies that had previously benefited from the AI hype, in particular, came under significant pressure. This is largely due to the harsh political headwinds encountered during the election cycle. A CNBC survey indicated that the majority of respondents cited AI as a decisive factor in their voting decisions.
Legislation regarding central processing units has also gained traction, with concrete moratoria concerning data centers appearing on ballot papers in at least 40 districts across 10 US states. Voters generally chose in favor of restrictions or against any relaxation of regulations for constructing data centers. Following the elections, representatives, including Bernie Sanders, even pushed for a national moratorium on AI data centers on Friday.
In other market sectors, the European common currency was slightly weaker on Thursday evening, with the Euro costing $1.1217 and, consequently, the Dollar valued at 0.8915 Euros. Conversely, the price of gold managed to gain; a fine ounce reached $4,084 in the evening, reflecting a 0.5 percent increase, which translates to a price of 117.06 Euros per gram.
Energy prices also edged higher. A barrel of North Sea Brent crude oil cost $98.55 on Thursday evening, equating to a 4.2 percent increase compared to the end of the prior trading session.
