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Summary
President Donald Trump blamed Democrats for the Nov. 5 sell-off, when the Nasdaq Composite fell 5.52%, according to Fox Business.
Investors weighed whether the Democratic midterm sweep could slow data center construction, after voters opposed data centers in 40 of 41 ballot measures, per a Ballotpedia and CNBC analysis.
SpaceX (SPCX) and Tesla lost about $456 billion in combined market cap by Thursday's close, CNBC reported, amid concern over congressional probes and tighter regulation.
Gotrade News - President Donald Trump blamed Democrats for Thursday's sell-off on Nov. 5, when the Nasdaq Composite fell 5.52%, according to Fox Business. Investors weighed whether the Democratic midterm sweep could slow data center construction and bring new scrutiny to Elon Musk, hitting SpaceX (SPCX), Tesla (TSLA) and Nvidia (NVDA).
In a Truth Social post cited by Fox Business, Trump wrote, "The Stock Market suffered one of the Worst Days in History based on the results of the Election," and added, "Remember, it wasn't Republicans, it was Dumocrats." The Dow Jones Industrial Average fell 1,833.06 points, or 3.44%, and the S&P 500 dropped 4.36%, Fox Business reported, while the Nasdaq closed more than 10% below its October record, in correction territory. A day earlier, Trump had pointed to oil prices ("Not the war, the price") and said of Democratic bills, "They'll send over things that are insane and I'll veto them," according to CNBC's live election coverage, which projected Democrats to win at least 250 House seats and at least 54 Senate seats.
Regular-session close on November 5, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against the closing price on Nasdaq.com. 52-week range: Yahoo Finance daily highs and lows since November 6, 2025.
SpaceX (SPCX): Deutsche Bank Flags Texas Data Center Risk
SpaceX shares fell 3.8% in Wednesday premarket trading amid losses for Republican candidates Musk backed, according to CNBC's live coverage. In Texas, where SpaceX and Tesla are both headquartered, Democrat Gina Hinojosa defeated Gov. Greg Abbott and Democrat James Talarico beat state Attorney General Ken Paxton for a U.S. Senate seat, CNBC reported.
As reported by CNBC, Deutsche Bank analysts wrote in a Wednesday note that they "could envision SpaceX facing some incremental headwinds" and that SpaceX's Texas compute capacity could now be at risk of delays. The analysts noted that Hinojosa "made data centers a major campaign issue" and cited her call for "a moratorium on new approvals" until the state legislature passes stronger protections, including on water use. They added that SpaceX's capital spending may need to rise to meet "tighter, anticipated regulations around data center buildout."
Congressional scrutiny is another pressure point. Musk and SpaceX have been instructed to preserve records concerning restrictions imposed on a military version of Starlink in Ukraine, CNBC reported, citing CNN, which attributed the report to an aide to a Democratic senator. Musk's fortune passed $1 trillion after SpaceX's June IPO but is now below $800 billion, having dropped about $90 billion in the past week, according to Forbes data cited by CNBC.
Tesla (TSLA): Musk Companies Shed About $456 Billion by Thursday
Tesla's slide began a day earlier, when the stock fell 3.5% in Wednesday premarket trading, per CNBC. By Thursday's close, SpaceX and Tesla had lost about $456 billion in combined market cap, CNBC reported, as investors weighed possible congressional probes and tighter regulation after the midterms.
Per CNBC, regulatory scrutiny could also block Musk's chances to merge SpaceX and Tesla, a deal that would first require shareholder approval. Musk spent at least $474 million on the midterms, including $224 million in Texas, according to CNBC's live coverage. Of 44 federal races targeted by his America PAC, Republicans it backed, or whose opponents it targeted, had lost 29 as of Wednesday morning, won three and were awaiting results in 12.
Nvidia (NVDA): Voters Rejected 40 of 41 Data Center Measures
Data center pushback was on the ballot itself. Voters "resoundingly sided against the data center boom in 40 of the 41 measures under consideration" across 10 states, according to a Ballotpedia and CNBC analysis, with Harwood, North Dakota the only exception. Ohio held 21 local measures, residents of Ashville rejected a resolution that would have approved EdgeConneX data center terms, and voters in Joliet Township, Illinois, said no to a measure on AI data center construction, CNBC reported. Jim Bianco noted that the measures were non-binding.
Even as the Dow jumped more than 1,500 points on Wednesday, CoreWeave and Nebius each fell more than 7%, according to CNBC. On Thursday, Fox Business said tech and AI losses, including Nvidia, drove part of the sell-off as investors weighed the Democratic wins' potential effect on AI regulation and data center development. The Philadelphia Semiconductor Index fell more than 12%, and investors also cited heavy AI-related borrowing and spending, rising energy costs and uncertain returns, Fox Business reported, in the Nasdaq's worst session since April 2025.
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
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M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms. His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
Hendrie Saputra holds a Master of Business Administration (MBA) with a concentration in Business Risk & Finance, along with professional experience in finance, marketing, and project management. He is experienced in analyzing market data and developing research-driven business strategies.
