ME AI News: U.S. stocks surged on Wednesday after the Democrats won the midterm elections, but the Nasdaq Composite plunged on Thursday as investors pulled out of technology stocks for a second consecutive trading day. The tech-heavy Nasdaq fell 3.3%, while the S&P 500 dropped 1.9%. The Dow Jones Industrial Average fell 489 points, or 0.9%. Gains in stocks such as Chevron and Johnson & Johnson were not enough to offset the drag on the Dow from the tech sell-off. AI-related stocks, particularly those in the chip industry and companies tied to data centers, fell for a second straight day. According to data from MSX.COM, AMD (AMD.O) fell 12%, Micron Technology (MU.O) dropped 9%, SK Hynix (SKHY.O) fell 8.8%, and Nvidia (NVDA.O) lost 5%. The Philadelphia Semiconductor Index plunged 8%, hitting its lowest level since April 20. The Nasdaq Composite is now down more than 10% from its record closing high on October 6. Investors are concerned that the Democrats’ control of both chambers of Congress, along with their victories in key gubernatorial races, could lead to more regulation of AI infrastructure development across the United States. Jordan Watson, a portfolio manager at Tandem Investment Advisors, said the stock market rally and the trend of money flowing out of AI stocks may be temporary. However, markets could see more volatility as investors digest the election results and their potential policy implications. (Source: ME)