After the initial post-election market gains, the stock market came crashing back down to earth with losses heavily concentrated in the tech center. The AI trade is coming under intense scrutiny and pressure with several states voting for moratoriums against new data center construction. Other factors like hyperscaler debt and cash flow issues, nebulous financing agreements, and slowing revenue growth from high profile companies like Anthropic are poisoning the AI investment narrative. And Donald Trump, one of its biggest proponents who has been blocking and tackling for the industry and giving it everything it asks for, was just hammered in the midterms.

Resources

Yahoo! Finance: Chipmakers Tumble Toward Worst Day In Years: Nvidia, Micron And Broadcom Down Over 8%

CNBC: What was really behind Wednesday’s monster rally? Trump quickly making peace

Bloomberg: S&P 500 Sinks 4% as AI Washout Rattles Wall Street: Markets Wrap

Yahoo! Finance: Wall Street Selloff Sends Nasdaq Down 4% as Dow Plunges More Than 1,000 Points

Bradenton Herald: Investors wipe $2.5 trillion off Nasdaq as blue tsunami prompts AI fears

Compute Law Blog: Bonus depreciation for AI data center equipment

The American Prospect: The Companies That Got $83 Billion in Tax Breaks Last Year

The White House: Fact Sheet: President Donald J. Trump Accelerates Federal Permitting of Data Center Infrastructure

investingLive: US government builds $30bn stock portfolio across 43 deals in chips, minerals and quantum

Politico: ‘AI earthquake’: Democrats eye a Silicon Valley reckoning

The Business Times: Alphabet shares fall after revenue miss, cash burn worsens

CNBC: Alphabet sinks 10% as it holds 2026 capex unchanged, expects significant increase in 2027

SEC: Meta Reports Third Quarter 2026 Results

CNBC: Amazon posts negative free cash flow of $42.4 billion, holds 2026 capex unchanged

SEC: Oracle Announces Q1 Results Driven by Triple Digit Growth in Cloud Infrastructure Revenues

FourWeekMBA: AI Weekly: Capex Outran Cash as Off-Book Bills Neared $4T

SEC: Anthropic S1

Trading Economics: US 10-Year Yield Falls on Safe-Haven Demand

Reuters: AI credit worries send default insurance to record high

BBC News: These firms you’ve never heard of are feeding fears the AI bubble could burst

FourWeekMBA: How Neoclouds Work: 6% Debt on Microsoft Rent, and 4 Risks

Reuters: Trump lashes out at Fed after Warsh backs rate hike

Mother Jones: Midterm Rout for Data Centers: Voters in Nearly 40 Towns Rejected Projects

CNBC: Voters rebuff data centers in every ballot measure except one during the 2026 midterms

24/7 Wall Street: IREN Sinks 9% After Report Links It to Microsoft’s AI Spending Delay; Nebius Tumbles 11%, CoreWeave Slides 7%

South China Morning Post: How Democratic sweep could slow AI growth in US – and help China’s ambitions

State of AI: Is AI Data Center Debt the Next Subprime?

Bisnow: Life Insurers Writing Riskier Loans To CRE, Setting Off Alarm Bells

The New York Times: U.S. Pensions Are Riding the A.I. Wave. For Better or Worse.

InvestmentNews: Democrats take Congress: what it means for your clients

UNFTR Resources

Video: Tech Stocks Crashed After the Midterms. Here’s Why.

Essay: The Market Just Lost Its Sugar Daddy.

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