November 6, 2026, (Inside AI) — Wall Street suffered a single-session loss of $3.2 trillion in market value on Thursday, as investors fled AI-linked stocks over fears that Democratic electoral gains will stall the construction of data centers. The selloff, described by market analysts as comparable to the 2008 and 2001 downturns, erased Nvidia's entire year-to-date gains and dragged down retailers like Walmart.
The trigger is political. According to UBS, roughly 30% of planned US data center buildout between now and 2028 sits in states where newly elected Democratic senators or governors have promised to block or pause construction. Investors now question both the debt taken on to build these facilities and whether they will be built at all.
Anthropic's IPO Doubts Deepen
Doubts are also mounting over whether Anthropic will proceed with its blockbuster IPO this month. The company had been expected to seek a valuation near $1.5 trillion before Thanksgiving, but deteriorating AI sentiment has investors pressuring the firm to postpone until next year.
"If that happened that would in itself be a real hit to sentiment, wouldn't it?" Elena Casas, co-host of the Reuters Morning Bid podcast, said on Friday's episode.
The political shift extends beyond statehouses. Key Republican senators have requested a briefing with Nvidia CEO Jensen Huang over his dealings with Megaspeed International, a company reportedly under investigation over China spying allegations. The news added to the negative sentiment around Nvidia, which was among the hardest-hit stocks in Thursday's rout.
"Yesterday is another lesson of where we see hype and hope, making stocks go higher instead of the fundamentals," Peter Devlin, co-host of the podcast, said. "I wouldn't hang your hat on any date for an Anthropic IPO."
The selloff reflects a broader repricing of AI infrastructure risk. CoreWeave, a major data center provider, has lost more than half its value since the start of October. Investors are now questioning the debt loads taken on to fund the AI buildout, not just the timeline for construction.
Democrats may face their own pressure to moderate. Blocking data centers could hit two engines of the US economy: consumer spending by wealthier households who feel flush from stock gains, and the AI infrastructure buildout itself. A slowdown there would ripple well beyond AI companies.
"If you hit the brakes here, it's not only AI companies that will suffer, it's the whole of the US economy," Casas said.
Some market watchers see a buying opportunity. They argue that if a data center project is economically productive, it will be built regardless of political rhetoric. Whispers on social media also suggest Democratic senators in Texas may be dialing back threats to suspend buildouts.
Attention now turns to Friday's US jobs report. Economists expect October payrolls to have risen by about 65,000, above the 40,000 breakeven rate needed to keep unemployment steady. Wage growth remains the key metric for Federal Reserve policymakers, with weak wages unlikely to pressure inflation.
"This is a jobs report that isn't really going to move the needle immediately in terms of Fed expectations," Devlin said. A payrolls number above 100,000 with unemployment at 4.1% would be needed to shift rate expectations.
Oil prices also returned above $100 a barrel, as traders bet Congress will struggle to restrain President Trump's foreign policy despite Democratic gains. For now, the market's focus remains fixed on Wall Street and the AI trade.
Shamil has a low tolerance for AI that only works in controlled demos. He covers agentic systems and generative AI with the skepticism of someone who has seen too many “revolutionary” tools quietly disappear six months after launch.
