Horror on the Nasdaq: AI companies crash, Tesla stock in free fall

The Nasdaq plunges more than 3% amid sharp declines in chip stocks and shares of Tesla and SpaceX, as investors fear stricter regulation on data centers following the Democrats' victory in the US midterm elections.

Trading on Wall Street opened with sharp declines, with the Nasdaq index plunging more than 3%. The losses are concentrated in the chip sector: Nvidia loses more than 5%, while AMD, Micron, and SanDisk post double-digit drops. The main reason is investor fear of tighter regulation on data center construction following the Democrats' victory in the US midterm elections, especially in Texas, where Democratic candidate Gina Hinojosa supported a freeze on new projects. Meanwhile, SpaceX and Tesla shares fall about 8% and 9% respectively, amid Elon Musk's political loss after he invested in Republican candidates. The headline uses words like 'horror', 'crash', and 'free fall' for emphasis, while the described declines are sharp but not a total collapse.