The Market Just Lost Its Sugar Daddy.
After the initial post-election market gains, the stock market came crashing back down to earth with losses heavily concentrated in the tech center. The AI trade is coming under intense scrutiny and pressure with several states voting for moratoriums against new data center construction. Other factors like hyperscaler debt and cash flow issues, nebulous financing agreements, and slowing revenue growth from high profile companies like Anthropic are poisoning the AI investment narrative. And Donald Trump, one of its biggest proponents who has been blocking and tackling for the industry and giving it everything it asks for, was just hammered in the midterms.
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Show Notes
Clips
Episode Timestamp + Link | Clip Link
- 00:00:50 | NBC News: Stocks tumble after post-election rally
- 00:01:06 | ABC News: Dow plunges 1,200 points, shedding most of midterm results stock rally
- 00:01:25 | Bloomberg Podcasts: Worst US Stock Rout Since 2020 Leaves Virtually Nowhere to Hide | Closing Bell
Resources
- Yahoo! Finance: Chipmakers Tumble Toward Worst Day In Years: Nvidia, Micron And Broadcom Down Over 8%
- CNBC: What was really behind Wednesday’s monster rally? Trump quickly making peace
- Bloomberg: S&P 500 Sinks 4% as AI Washout Rattles Wall Street: Markets Wrap
- Yahoo! Finance: Wall Street Selloff Sends Nasdaq Down 4% as Dow Plunges More Than 1,000 Points
- Bradenton Herald: Investors wipe $2.5 trillion off Nasdaq as blue tsunami prompts AI fears
- Compute Law Blog: Bonus depreciation for AI data center equipment
- The American Prospect: The Companies That Got $83 Billion in Tax Breaks Last Year
- The White House: Fact Sheet: President Donald J. Trump Accelerates Federal Permitting of Data Center Infrastructure
- investingLive: US government builds $30bn stock portfolio across 43 deals in chips, minerals and quantum
- Politico: ‘AI earthquake’: Democrats eye a Silicon Valley reckoning
- The Business Times: Alphabet shares fall after revenue miss, cash burn worsens
- CNBC: Alphabet sinks 10% as it holds 2026 capex unchanged, expects significant increase in 2027
- SEC: Meta Reports Third Quarter 2026 Results
- CNBC: Amazon posts negative free cash flow of $42.4 billion, holds 2026 capex unchanged
- SEC: Oracle Announces Q1 Results Driven by Triple Digit Growth in Cloud Infrastructure Revenues
- FourWeekMBA: AI Weekly: Capex Outran Cash as Off-Book Bills Neared $4T
- SEC: Anthropic S1
- Trading Economics: US 10-Year Yield Falls on Safe-Haven Demand
- Reuters: AI credit worries send default insurance to record high
- BBC News: These firms you’ve never heard of are feeding fears the AI bubble could burst
- FourWeekMBA: How Neoclouds Work: 6% Debt on Microsoft Rent, and 4 Risks
- Reuters: Trump lashes out at Fed after Warsh backs rate hike
- Mother Jones: Midterm Rout for Data Centers: Voters in Nearly 40 Towns Rejected Projects
- CNBC: Voters rebuff data centers in every ballot measure except one during the 2026 midterms
- 24/7 Wall Street: IREN Sinks 9% After Report Links It to Microsoft’s AI Spending Delay; Nebius Tumbles 11%, CoreWeave Slides 7%
- South China Morning Post: How Democratic sweep could slow AI growth in US – and help China’s ambitions
- State of AI: Is AI Data Center Debt the Next Subprime?
- Bisnow: Life Insurers Writing Riskier Loans To CRE, Setting Off Alarm Bells
- The New York Times: U.S. Pensions Are Riding the A.I. Wave. For Better or Worse.
- InvestmentNews: Democrats take Congress: what it means for your clients
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