Shubham K

Key drivers of the Nasdaq/AI sell-off: Investors doubt whether massive AI data-center and chip spending (hundreds of billions, projected into the trillions) will deliver timely profits. Hyperscaler earnings (Alphabet, Meta, Amazon) and weak chip outlooks (Qualcomm, Arm, earlier Intel) fueled the doubts. Elevated borrowing costs add pressure. Democrats’ midterm sweep raised fears of tighter scrutiny or slower data-center expansion in key states amid growing local opposition. Nasdaq is now in correction territory (>10% off its Oct 6 high).

Losing midterms does not remove a US president from office or end their term. They stay president until the next presidential election (or resignation/impeachment). What changes is legislative power. The opposing party often gains House or Senate seats, creating divided government. This makes new laws harder to pass, increases congressional investigations and oversight, and can stall nominations. The president keeps full executive authority: vetoes, executive orders, foreign policy, and command of the military.

As of early Nov 4, Democrats are projected to take the House. They flipped key Senate seats including Texas (James Talarico over Ken Paxton), South Carolina, North Carolina and Ohio, putting them on track for a majority. More races still outstanding. Trump has said he will accept the results.