Dow sinks 1,833 points as Democratic midterm wins spark AI-curb fears

The selloff on Nov 5 marked a sharp reversal for US stocks, with the Dow falling 1,833.06 points and the Nasdaq losing 1,421.51 points. The immediate trigger was the Democratic victory in the midterm elections, which investors interpreted as a signal that AI development could face new restrictions. Worries about a slower pace of data-center construction added to the selling, particularly in high-tech names.

The damage was concentrated in semiconductors, while real-estate management and development shares rose. Some individual companies bucked the trend: Tapestry gained on strong Coach-brand results and a raised full-year outlook, AppLovin rose after beating earnings expectations and announcing a buyback, and Kimberly-Clark advanced on strong sales of Rogaine. Meanwhile, Blue Owl Capital fell sharply on concerns that delays in AI progress could hurt its AI-construction investments, and Microsoft declined after reportedly rejecting Nscale's Texas data-center expansion plan. After the close, Airbnb rose in extended trading on strong bookings and guidance, while Lyft fell after an unexpected per-share loss.