Tech stocks plummeted amid investor concerns over potential regulatory crackdowns on artificial intelligence and data centers, with the Nasdaq suffering a sharp decline. Fears of stricter policies from a Democratic-led Congress and state governments triggered a wave of selling, reflecting growing unease over how new rules could impact the industry. The market reaction underscores tensions between innovation and oversight as lawmakers weigh in on the rapid expansion of AI and data infrastructure. Traders are closely watching whether proposed measures will stifle growth or reshape the sector’s future.
Shares sank, with the tech-heavy Nasdaq dropping over 5%, as investors reacted with fear that a Democratic Congress — and states across the country -— would crack down on AI and data centers.
