T-Rex 2X Inverse NVIDIA Daily Target ETF

AI Infrastructure Gets a Political Reality Check.

Markets Erase the Post-Midterm Bounce.

Wall Street delivered its worst session since the April 2025 tariff shock. The S&P 500 fell 4.36% to 7,353.73, the Nasdaq Composite dropped 5.52% to 24,315 (entering a correction, more than 10% below its October 6 high), the Dow lost 1,833 points (−3.44%) to 51,523, and the Russell 2000 declined 4.45%. The VIX spiked roughly 70% to the high-28s. All 11 S&P sectors finished red; Technology was the clear laggard while Consumer Staples held up best.

The trigger was the Democratic midterm sweep and the immediate policy implications for AI data-center buildout. Candidates who ran against data centers and AI infrastructure won key races, including governorships in Texas, Georgia, and Ohio. Texas Governor-elect Gina Hinojosa has pledged a statewide moratorium on new data-center permits until stronger community and energy protections are in place. Goldman Sachs and others flagged that Democratic wins at the state and local level could affect roughly 45% of planned U.S. data-center capacity additions through temporary pauses or tighter permitting. Nomura highlighted medium-term AI capex risks from 2028 onward. Bernie Sanders and other progressive voices called for a national data-center moratorium. The market treated this as a material constraint on the power, water, permits, and local politics required to turn chip demand into actual compute.

The semiconductor complex was hit hardest. The Philadelphia Semiconductor Index fell more than 12% at points. $NVIDIA(NVDA.US) closed down 9.26% at $181.60, $AMD(AMD.US) −17.26%, $Micron Tech(MU.US) −17.46%, $Broadcom(AVGO.US) roughly −10%, $Marvell Tech(MRVL.US) −16%, and $Sandisk(SNDK.US) −22%. Data-center-linked names (IREN, Applied Digital, Nebius, CoreWeave) also dropped double digits. The narrative shifted quickly from “chips are the bottleneck” to “politics, power, and permitting are the bottleneck.” Existing capacity and projects already under construction may be relatively better positioned than pure new-build stories, but the market did not make that distinction today.

Company-Specific Bright Spots

$AppLovin(APP.US) was the standout large-cap gainer, up roughly 31% to the mid-$350s. It beat Q3 estimates (revenue $2.18B, +55% YoY; EPS $4.30) and guided Q4 revenue of $2.365–2.395B, well above consensus. Free-cash-flow generation remained strong, and the board expanded the buyback authorization. In a session dominated by AI infrastructure fear, the ad-tech AI model improvements and consumer advertiser scaling held up. Other earnings-driven moves included strength in certain consumer names (e.g., $Krispy Kreme(DNUT.US), $Portillos(PTLO.US)) on beats and raised outlooks, while many pure-play AI infrastructure and memory names were sold indiscriminately.

Macro and Rates Context

This was primarily a political/AI-policy tape, not a rates-driven one. The 10-year yield was little changed near 4.90% (prior close). The Fed held rates at 3.75–4.00% last week with two hawkish dissents (Hammack and Cook). Cleveland Fed President Hammack reiterated today that more tightening is still needed to get inflation to 2% and prefers a gradual path. Markets continue to price a high probability of a December hike. Sticky inflation and elevated oil (tied to Middle East disruptions) remain in the background, but they were not the main story today. Wednesday’s post-election relief rally was fully reversed.

FinTwit / Narrative Take

The dominant FinTwit framing is that the AI trade just received a tangible non-chip constraint. Commentators noted that power, water, local opposition, and now state-level moratorium risk can slow deployment even if chip demand stays strong. Some treated the midterms as the catalyst the “AI bubble” narrative had been waiting for; others argued the reaction is overdone because many projects already underway are likely exempt and hyperscalers can reallocate capacity. The split between established capacity owners and pure new-build or debt-funded neoclouds is getting more attention. China-related H200 export friction for $NVIDIA(NVDA.US) was also cited as a secondary headwind.

What Matters Next

‣ After-the-close earnings reactions ($Airbnb(ABNB.US), $CloudFlare(NET.US), $EOG Resources(EOG.US), $Devon Energy(DVN.US) and others) and whether any AI-adjacent names can hold gains against the broader tape.

‣ Further commentary from newly elected Democratic governors and progressive House members on the speed and scope of data-center restrictions (Texas and Georgia will be watched closely).

‣ Whether analysts start cutting 2027–28 AI capex or unit assumptions, or simply raise political/execution risk premiums.

‣ $NVIDIA(NVDA.US)’s November 17 earnings and any update on supply constraints versus demand visibility.

‣ Bond-market reaction if the AI-related growth scare feeds into broader risk-off; housing, real estate, and highly leveraged infrastructure remain rate-sensitive.

The session was a clean example of a narrative catalyst overpowering fundamentals in the short term. Demand for AI compute has not disappeared, but the path to delivering it just got more politically complicated. Position sizing and drawdown control matter more than usual while the market sorts the durable constraints from the headline risk.

NFA / DYOR. This is market commentary for informational purposes only and not investment advice.

More than $2 trillion has been wiped from the S&P 500 as the AI selloff deepens

$Sandisk(SNDK.US) -20%

$AMD(AMD.US) -15%

$Micron Tech(MU.US) -15%

$Tesla(TSLA.US) -12%

$NVIDIA(NVDA.US) -9%

$SMH and the chip index are both down about 10%, and the Nasdaq 100 $QQQ is off 5.9%

Ten of the largest tech names had already erased $1.7 trillion by late morning, with $NVIDIA(NVDA.US) alone losing more than $400 billion

Wednesday's post-election rally is gone. Traders are pricing a slower data center buildout under a Democratic Congress, and the most crowded trade in the market is still looking for an exit

Source: StockMarket.News

$NVIDIA(NVDA.US)

THE INFORMATION:

- NVIDIA HAS APPROACHED APOLLO ABOUT CREATING A NETWORK OF SMALL AI DATA CENTERS POTENTIALLY SPANNING 20 STATES ACROSS THE US

- NVIDIA IS EXPLORING RETROFITTING OLD TELECOM BUILDINGS FOR AI DATA CENTERS

well, Jensen isn’t going down without a fight

Source: amit

The Iron(wood) Throne:

Google's TPU Stakes Its Claim on Inference

Viable Alternative of CUDA Moat,

NVIDIA Working Nights & Weekends,

Jensen’s Counter Submission, Kimi K3,

Meta Muse Spark Open, GLM5.3,

TorchTPU, SGLang, vLLM, llm-d, Ray

Why has today been so bad?

You had multiple sell side analysts on Wall Street come out this morning and basically say the same thing, which is that they are starting to believe capex growth will now peak in 2027. This doesn’t mean capex will stop, but the rate of growth for it will peak in 2027.

This means the rate of growth for semi earnings could be perceived as topping as well.

At the same time, the market doesn’t know if the Fed will continue to be aggressive with their tightening.

Neocloud debt continues to yield higher, with CoreWeave now having yields at 17%.

The result is a market sell off across the board. Nvidia is down 9%.

No one believes in the future earnings or low P/Es because if datacenters can’t come online, the revenue itself won’t be there to justify the capex.

The bright side is that mean hyperscalers pull back capex and FCF goes positive sooner than expected along with yields eventually coming down due to lack of new AI debt, but that means semis continue to sell off in that scenario.

Worst day all year for the Nasdaq.

Source: amit