Americas

US Stocks Tumble on Data Center Backlash in Midterm Elections

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By Ryan Wu/John Van Trieste

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US stocks have taken a major tumble in the wake of America’s midterm elections, with investors spooked by a backlash against data centers. In close to 40 local elections across the country, voters passed propositions to ban or limit data centers. They also elected governors that promise to limit expansion. Around half of planned data center expansions could now face closer scrutiny—or opposition. As a result, the Nasdaq fell by 5.5%, the S&P500 dropped by 4.3%, and the Dow Jones Industrial Average was down 3.4%. Not all analysts see the market's reaction as entirely justified, but most agree that it could take some time to shake out these jitters.