Technology shares remained volatile into the weekend after one of the sharpest AI-driven sell-offs since 2025’s tariff shock.
The Nasdaq’s midweek collapse — roughly 5.5% in a single session — erased an estimated $2.5 trillion in value and dragged Asia and Europe lower.
Investors say Democratic opposition to rapid data-center expansion is colliding with already fragile questions about AI returns on capital.
Chipmakers and mega-cap platforms that led the AI trade absorbed the heaviest losses, with Nvidia and Tesla among the most widely cited casualties.
Some strategists see a partial rebound if earnings prove resilient, but political risk premiums are now priced into the sector narrative.
Corporate AI leaders have begun acknowledging community backlash, urging firms to engage locals rather than assume projects will be welcomed.
IPO calendars for AI-linked companies look more uncertain as bankers reassess windows later this month.
For households, 401(k) statements reflecting the Magnificent Seven slide may become a political talking point as Democrats prepare to govern.
