Tech Stocks Plunge $2T After Midterm Elections; IREN Soars on AI Cloud Sales

US tech stocks lost over $2 trillion in value after Democrats won the midterm elections, with the Nasdaq dropping more than 5 percent. Investors feared that a Democratic Congress would crack down on AI and limit the growth of data centers. Companies like Meta, Alphabet, and Elon Musk's Tesla and SpaceX all fell sharply. Average Americans with retirement accounts like 401(k)s were also affected by the losses.

Despite the broad sell-off, some AI-focused companies defied the trend. IREN stock soared after the company reported that its AI cloud sales doubled compared to the previous quarter. Analysts said the strong earnings result brought investors rushing back into a stock that had previously fallen out of favor amid market pressure on neo cloud firms.

Meanwhile, a Morningstar report warns that AI investment at the four major hyperscalers will outpace earnings growth through 2028. Capital expenditure is expected to reach 80 percent to 100 percent or more of EBITDA, while incremental EBITDA yield stays in the 20 percent to 40 percent range. Large hyperscalers can absorb this pressure better than smaller players in the AI ecosystem.

OpenAI has adjusted how ChatGPT Shopping displays prices, now relying on raw HTML from merchant servers rather than JavaScript. The shopping feature, launched in 2025, stepped back from Instant Checkout in March 2026 to focus on product discovery. Approved merchants submit product feeds over ACP through SFTP, file upload, or API, and the service is currently live only in the U.S.

In financial services, researchers launched FINCOSMOS to test financial AI agents in realistic open-world conditions. Across 150 sessions with four coding agents, no session passed all checks, and human experts blamed the agents for 88.33 percent of failures. The findings highlight how far automated AI systems still have to go before they can handle complex financial tasks independently.

Quanticagpt built a quantitative trading platform that links an AI grid trading engine to a USDC settlement system. The system adjusts grid parameters and order sizes based on market volatility and uses USD Coin as the single unit for pricing and settlement. Product tiers are organized by timeframes, risk profiles, and strategy rules, aiming to reduce manual work while keeping exposure within set limits.

The UK government is rolling out an AI tool called PlanAssist to help planning officers handle routine applications faster. Early testing with Camden, Barnet, and Dorset cut task time by 58 percent and reduced processing from eight weeks to four. The tool gives officers evidence-based initial assessments while qualified officers still make final decisions. It will expand to 12 more councils and reach every council in England by the end of 2027.

Corsica Technologies made CRN's first AI Innovators list for 2026. Its Corsica AI One solution helped Fusion Education Group speed up annual employee reviews, built with Microsoft Copilot Studio and using Microsoft Forms feedback. The company focuses on adding cybersecurity and governance to AI adoption for mid-market and enterprise clients.

Key Takeaways

US tech stocks lost over $2 trillion after Democrats won midterm elections, with the Nasdaq falling more than 5 percent on AI regulation fears.
Companies like Meta, Alphabet, Tesla, and SpaceX all declined sharply following the election results.
IREN stock surged after AI cloud sales doubled quarter-over-quarter, drawing investors back to the stock.
Morningstar reports hyperscaler AI capex will reach 80-100% of EBITDA through 2028, outpacing earnings growth.
ChatGPT Shopping now uses raw HTML for price display and has stepped back from Instant Checkout to focus on discovery, available only in the U.S.
FINCOSMOS testing found that financial AI agents failed 88.33% of tasks across 150 sessions with four coding agents.
Quanticagpt links an AI grid trading engine to USDC for pricing and settlement, adjusting parameters based on market volatility.
UK's PlanAssist AI tool cut planning task time by 58% in early tests, reducing processing from eight weeks to four.
Only 42 of 455 largest independent wealth-management RIAs have a designated AI or innovation leader, per Caddi Technologies.
Corsica Technologies was named to CRN's AI Innovators List 2026 for helping clients deploy real business AI tools.

AI stocks crash after US midterms as Democrats push for regulation

US tech stocks lost over $2 trillion after Democrats won the midterm elections. Investors feared new AI regulation and limits on data center growth. The Nasdaq dropped more than 5 percent. Asian and Australian markets also fell. Experts say AI regulation will increase but the AI boom is not over.

Fears of AI crackdown spark $2 trillion tech stock rout after midterms

Stocks sank after Democrats won the midterm elections by a large margin. Investors worried that a Democratic Congress would crack down on AI and data centers. The tech-heavy Nasdaq fell more than 5 percent and lost over $2 trillion in value. The Dow Jones and S&P 500 also declined. Companies like Meta and Alphabet still need data centers to build AI technology.

AI stock rout follows Democratic midterm election victories

The stock market dropped sharply two days after Democrats won the US midterm elections. Fears of AI regulation pushed the Nasdaq down over 5 percent. Many AI-related stocks were among the biggest losers. Elon Musk's companies Tesla and SpaceX also fell sharply. Average Americans with retirement accounts like 401(k)s are also affected by the losses.

IREN stock rises after AI cloud sales double

IREN stock soared after the company reported that its AI cloud sales doubled since last quarter. The company had struggled earlier as investors pulled back from neo cloud firms. Its earnings showed strong growth despite broader market worries. Analysts said the positive reaction showed investors returning to companies with good results.

IREN stock jumps on strong AI cloud sales growth

IREN stock surged after reporting that AI cloud sales doubled compared to last quarter. Interactive Brokers strategist Steve Sosnick and AInvest editor Adam Shapiro discussed the post-earnings move. The company had fallen earlier due to market pressure. Analysts noted that investors rushed back into stocks that showed solid earnings after previously being out of favor.

FINCOSMOS tests financial AI agents in open-world setting

Researchers created FINCOSMOS to test financial AI agents in realistic open-world conditions. A simulated user hides a strategy and only reveals it when asked. The agent must find data on the web, build backtests, and deliver verifiable results. In 150 sessions with four coding agents, no session passed all checks. Human experts blamed the agents for 88.33% of failures.

Hyperscaler AI spending will exceed near-term earnings

A Morningstar report says AI investment at four major hyperscalers will outpace earnings growth through 2028. Capex is expected to reach 80% to 100% or more of EBITDA, while incremental EBITDA yield stays in the 20% to 40% range. This means these companies are deploying capital ahead of earnings. Large hyperscalers can absorb the pressure better than smaller AI ecosystem players.

ChatGPT Shopping now relies on raw HTML

ChatGPT Shopping now shows prices based on raw HTML from merchant servers rather than JavaScript. OpenAI launched shopping in ChatGPT in 2025 and later stepped back from Instant Checkout in March 2026 to focus on discovery. Approved merchants submit product feeds over ACP through SFTP, file upload, or API. Shopping is currently live only in the U.S.

Most large RIAs have no AI leader

Caddi Technologies studied the 455 largest independent wealth-management RIAs and found only 42 have a designated AI or innovation leader. Among firms with an AI leader, 71.4% were hiring for AI tools, compared to just 11% without one. 56.6% of AI-hiring firms made no compliance-archiving or security hire. 17 of 24 AI leads started their roles in 2026.

Semiconductor costs and AI governance reshape tech spending

Semiconductor industry spending is expected to reach $1.4 trillion by 2025, up from $1.1 trillion in 2020, driven by AI and machine learning demand. AI infrastructure commitments are pushing companies to invest more in hardware and software. Compliance costs are also rising due to increased regulatory requirements. Spending is projected to reach $1.5 trillion by 2026.

Quanticagpt Links AI Trading Engine to USDC Settlement System

Quanticagpt built a quantitative trading platform that uses an AI grid trading engine. The system adjusts grid parameters and order sizes based on market volatility. It uses USD Coin (USDC) as the single unit for pricing and settlement. Product tiers are organized by timeframes, risk profiles, and strategy rules. The setup aims to reduce manual work while keeping exposure within set limits.

AI Tool PlanAssist Aims to Speed Up UK Planning Decisions

The UK government is rolling out an AI tool called PlanAssist to help planning officers handle routine applications faster. Early testing with Camden, Barnet, and Dorset cut task time by 58 percent and reduced processing from eight weeks to four. The tool gives officers evidence-based initial assessments while qualified officers still make final decisions. It will expand to 12 more councils now and reach every council in England by the end of 2027. The rollout is part of efforts to build 1.5 million homes this Parliament.

Corsica Technologies Named to CRN AI Innovators List 2026

Corsica Technologies made CRN's first AI Innovators list for 2026. The company helps mid-market and enterprise clients move from AI experiments to real business tools. Its Corsica AI One™ solution helped Fusion Education Group speed up annual employee reviews. The review tool was built with Microsoft Copilot Studio and uses Microsoft Forms feedback. Corsica focuses on adding cybersecurity and governance to AI adoption.