We are facing World War III, a global energy crisis, a global fertilizer crisis, a global food crisis, a global cost of living crisis, widespread rioting in Europe and a Super El Niño all at the same time. On top of everything else, now the stock market is crashing. Since the market peaked on October 6th, the losses that we have witnessed over the past month have been absolutely staggering. Of course “Black Thursday” was the worst day of this crash so far. There was just mass carnage everywhere. Children should not be allowed to look at the numbers that I am about to share with you because they are so horrifying. I say that in jest, but honestly we haven’t seen anything quite like this in a very long time.
The AI bubble has been artificially propping up the stock market throughout this entire year.
Now the AI bubble has burst.
Once you have finished this article, I don’t think that you will have any doubts about this.
The Dow Jones Industrial Average was down 1,833 points on Thursday, which was the sixth largest single day point drop in history.
But the carnage was even worse for the S&P 500 and the Nasdaq.
During the stock market sell off on Thursday, companies in the S&P 500 lost $2.9 trillion in market capitalization and companies in the Nasdaq Composite lost $2.5 trillion in market capitalization.
That was an all-time single day record for both indexes.
18 years ago on November 5th, 2008 the Nasdaq closed at 1,681.64.
On Thursday alone, the Nasdaq lost 1,421 points.
It really was “Black Thursday” for stock market investors.
When the market opened, the entire post-election rally was wiped out in 40 minutes…
Just like that, all of the huge gains that were made yesterday were gone.
By the time one hour had elapsed, a total of 2.5 trillion dollars in stock market wealth had been erased…
It was one of the worst hours in the entire history of the stock market.
Chip manufacturers were hit particularly hard…
As a result of the uncertainty, shares of chip manufacturers Nvidia and Broadcom both lost more than nine percent in the first hours of trading this morning – while Qualcomm bottomed out with a 14 percent drop.
As the AI bubble inflated, chip manufacturing stocks soared to unprecedented heights.
Now they are going down a lot faster than they went up.
Since October 13th, the value of Intel stock has nearly been cut in half…
What we have witnessed over the past month has truly been unprecedented.
We were warned that the AI bubble would burst, and that time has now arrived.
Collectively, the value of AI stocks has now fallen by more than 13 trillion dollars…
The results of the midterm elections were not good for the AI industry at all.
Democrats were elected to important state and local positions all over the nation, and the AI industry lost 40 out of 41 local ballot measures…
The artificial intelligence data center boom hit a roadblock on election night, further complicating the tech industry’s historic expansion plans.
There were 41 local ballot measures in 10 states up for a vote on Tuesday that would place restrictions on the construction of data centers in different ways, according to Ballotpedia.
Voters sided against data centers in each measure except one in Harwood, North Dakota, according to an analysis by Ballotpedia and additional results gathered by CNBC on Wednesday. The lone exception was Harwood, North Dakota, where voters rejected an added review of industrial projects, including data centers.
People don’t want AI data centers in their communities.
In Trenton, Ohio a proposal to ban AI data centers was approved by 80 percent of the voters…
The vote to ban data centers in Trenton has passed, according to unofficial election results Tuesday, Nov. 3.
With 100% of precincts reporting, the measure passed by a landslide 80% to 20%.
Trenton resident Barry Blankenship, who led efforts in the city to get the ban on the ballot, said seeing the results was emotional.
One of the reasons why Amy Acton will be the next governor of Ohio is because she spoke out against the construction of more AI data centers, and anti-AI candidates were swept to victory in many other states as well…
Analysts at Morgan Stanley predict that Democratic governor-elect Amy Acton will also pose a major risk to Ohio’s data center buildout. Elsewhere, candidates in Texas, Maine, Michigan, Nevada, Georgia, and South Carolina all won seats after taking a stance against the rapid buildout of data centers. “It is clear that money does not buy outcomes,” said Anshi Bhatt, a tech and policy researcher, adding that in modern politics, creating a “local villain” is one way to build campaign momentum.
Likely next steps include more construction moratoriums or requiring data centers to pay for their own power grid upgrades instead of passing those costs on to nearby communities.
This truly is a nightmare for the AI industry.
How are they going to build the data centers that investors have been promised if state and local governments all over America ban or restrict their construction?
Approximately one-fourth of all new data center construction was supposed to happen in Texas, but Gina Hinojosa is proposing a moratorium on new data centers…
In Texas, where industry estimates show a quarter of the tech industry’s new data centers are planned to be built, Democrat Gina Hinojosa’s victory over incumbent Gov. Greg Abbott rattled the industry and its investors. She champions a moratorium on new projects along with regulations that would impose aggressive protections for the environment and electricity ratepayers from the effects of data centers’ immense energy consumption.
Some investment analysts had warned before the election that her victory would create serious headwinds for the industry, potentially putting billions of dollars in data center projects in peril.
“Data centers in space looking pretty appealing right now,” SpaceX chief executive Elon Musk wrote in a post on X early Wednesday. He spent more than $400 million backing conservative candidates running on Tuesday.
A lot of data center projects are going to get canceled.
Others will be delayed for years.
In other words, the AI industry just slammed into a wall.
That is really bad news for those that are holding stocks.
At this point, close to half of all financial wealth in the United States is in the stock market…
According to Fed data, U.S. households hold a record 48 percent of their financial assets in stocks – at the peak of the dot-com bubble, that figure was 38.7 percent.
If you had money in the stock market, hopefully you were able to get it out in time.
Needless to say, Elon Musk is poised to lose more money than anyone else.
In fact, he has already seen the value of his stocks fall by 152 billion dollars since the midterm elections…
A notable loser today is Elon Musk, who spent nearly half a billion dollars on the 2026 midterms supporting Republican candidates across the country.
Shares of his electric car company, Tesla, are down almost 12 percent today. When combined with yesterday’s brutal post-election losses, shares of Tesla have lost nearly 15 percent in two days – knocking about $39.4 billion off his fortune.
Meanwhile, SpaceX is down more than 12 percent since the election, for a shocking $113 billion in losses for Musk. Taken together, he has suffered $152 billion in paper losses since the election.
Can you imagine losing 152 billion dollars in less than 48 hours?
The AI industry is in an enormous amount of trouble.
All over the nation, Democrats are going to be passing all sorts of anti-AI measures on the state and local levels.
Meanwhile, those that were once willing to fund AI projects will now be far more stingy with their money.
This is not going to end well, and the boom years on Wall Street have just come to a very abrupt halt.
Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.
About the Author: Michael Snyder’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com. He has also written nine other books that are available on Amazon.com including “Chaos”, “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”. When you purchase any of Michael’s books you help to support the work that he is doing. You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter. Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites. These are such troubled times, and people need hope. John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.” If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.
