Socialists and liberals across the Democrat Party today have helped send stocks sliding with their authoritarian plan to clamp down on AI. The party won Congress and decided to forget healthcare and gas prices and go after data centers. Now investors have to reckon with what they have promised. Bernie Sanders is once again angrily leading the charge.
By mid-afternoon, the Dow had dropped about 1,700 points, erasing its post-election rally. The Nasdaq fell more than 5 percent, and the S&P 500 lost more than 4 percent. Chip stocks had their worst day since March 2020. Fears that Democrats would stop data center construction helped send investors out of technology stocks, and the selling spread. Before a bill even gets a vote, Democrats are already giving Americans something to worry about in their retirement accounts.
The market had rallied earlier this week, especially on Wednesday. Underneath that rally, however, investors were already selling companies tied to AI and its growing infrastructure, as more Democrats came out in force against AI. Thursday, that selling accelerated, pushing the Nasdaq into correction territory, more than 10 percent below its October high.
Chris Larkin, a managing director at E*TRADE from Morgan Stanley, explained the connection:
“Even though the market rallied Wednesday after the midterm elections, there were visible cracks in the AI ecosystem, and they widened on Thursday amid investor concerns about a potentially slower data center buildout with Democrats in charge of Congress.”
Sanders was busy supplying those investors with reasons to worry:
Bernie Sanders: Democrats must enact a national moratorium on AI data centers, must pause advanced AI development, and ban superintelligence. A moratorium on data centers is exactly what the American people want. https://t.co/YJlcRHAIjY
— Clash Report (@clashreport) November 5, 2026
“Democrats must enact a national moratorium on AI data centers, must pause advanced AI development, and ban superintelligence.”
He then offered his justification for making that decision for the entire country:
“And, by the way, I might mention that yesterday, in the election, in dozens of communities throughout our country, citizens voted for a moratorium on the construction of data centers. In other words, a moratorium on data centers is exactly what the American people want.”
A community voting against a construction project has made a decision about that community. Bernie hears permission to shut down construction nationwide.
In September, Sanders and Rep. Greg Casar (TX-35) announced legislation to ban superintelligent AI permanently. They also want advanced AI development paused until a new federal regulator establishes rules. A pause still puts people out of work, and several Democrats have called for bans.
BREAKING: 🇺🇸 Democrats face a push for a “day 1” ban on AI superintelligence, with up to 20 YEARS in prison for violators. Arizona Rep. Yassamin Ansari says a pause on advanced AI and a ban on artificial superintelligence must be “top of the Democratic agenda on day 1.” A bill that would do exactly that was introduced by Bernie Sanders and Greg Casar in September. Under the bill: - Developing or deploying superintelligent AI would be banned - Advanced AI development would pause until a new federal regulator sets rules and a model review process - A new cabinet-level AI department would monitor frontier models and oversee removing dangerous capabilities, like ignoring shutdown commands - Companies that try to get around it would face the “corporate death penalty” - Individuals would face up to 20 years in prison AI and data centers were a “crucial or major factor” for 56% of voters in the midterms, per an NBC News exit poll.
— Coin Bureau (@coinbureau) November 5, 2026
Casar celebrated the election as “the early tremor of a much bigger AI earthquake upending American politics.” Democrats are preparing hearings and weighing regulations, although they remain divided over the details. Apparently, announcing the earthquake comes before figuring out the policy.
The fights and concerns over data centers in communities across the country have become a hot-button issue. Communities should debate and discuss them at the local level, including noise, water use, and electricity costs. We have covered these issues extensively. Debates over developers paying costs and ensuring they have real commitments to neighbors are vital to sustaining this growth.
Construction workers and suppliers also depend on these projects. Investors feared delays would cut companies’ revenues and make debts harder to repay. That helps explain why the damage reached beyond AI stocks.
BREAKING: Goldman warns that Democratic victories at the state and local level could lead to temporary bans on new data center construction. 45% of planned US data center capacity could be affected, with Texas alone accounting for about 25% of planned capacity
— unusual_whales (@unusual_whales) November 4, 2026
Bernie wants Democrats to stop construction. He should explain what happens to the people hired to do it. They have bills due long before his proposed regulator writes rules.
Editor's Note: The Democrat Party has been infected by socialism, and it's spreading FAST. Democrats are claiming there's nothing to worry about, but we know the truth.
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