SpaceX shares fall more than 9% as AI sell-off hits US stocks

SpaceX shares fell more than 9% by lunchtime on Thursday as technology and AI stocks slid, amid investor concerns about data-centre construction and the returns on heavy spending on AI infrastructure.

The Nasdaq Composite, packed with technology shares, was down more than 5% at one point in early trading, according to the BBC. The Associated Press later reported that the Nasdaq was 4.5% lower and the S&P 500 down 3.6% with an hour of trading remaining. Those figures are intraday readings, not closing results.

The sell-off followed Democratic victories in US midterm elections. The BBC reported that investors were weighing the prospect of closer scrutiny of data-centre construction after Democratic gains in states including Texas. Texas governor-elect Gina Hinojosa had campaigned on a pledge to pause new data-centre construction.

The AP described broad losses among companies tied to AI, including chipmaker Nvidia, whose shares fell 8% in its account. It said investors had been concerned both that AI-related share prices had risen too high and that higher borrowing costs could slow data-centre building.

SpaceX shares trade under the ticker SPCX on the Nasdaq, according to the company’s investor-relations site. The market movements reported on Thursday were not closing prices.