Nasdaq Plunges 5% as US Voters Reject Data Center Projects

Key Facts

The Nasdaq index dropped 5% following US election results and a widespread voter rejection of data center projects. Information Age reported that the Magnificent Seven tech giants collectively lost over $1.4 trillion in market capitalization as a result of the shift. Key electoral outcomes included the election of anti-data center Governor Gina Hinojosa in Texas, alongside the passage of 40 measures to halt data center construction across 41 municipalities.

The sell-off underscores growing investor anxiety regarding the future of AI infrastructure growth amid new regulatory headwinds. This political shift coincided with economic data released on November 6, 2026, showing the unemployment rate held at 4.1% while Non-Farm Payrolls added 165,000 jobs, significantly beating the forecast of 65,000. Despite the resilient labor market data, the technology sector faced intense selling pressure driven by the electoral backlash.

Market participants are looking ahead to a speech by Fed official Waller on November 10, 2026, for potential insights into monetary policy. Additionally, the annual Consumer Price Index (CPI) report is due on the same day, with forecasts projecting a 3.9% rate, which may further influence market direction following the recent tech sector losses.