Why did the stock market crash today and will it bounce back?

By this point, no one should be surprised when the stock market has a big fluctuation. That's been the name of the game for a long time now. But Thursday, November 5 was a whole different ballgame, as practically everything went down, and went down big .

At one point on Thursday, around $2.5 trillion in market cap was erased as the Nadaq, S&P 500, and Dow Jones all plummeted . This comes after the stock market saw a nice bump on Wednesday. That initial wave of optimism was completely wiped away on Thursday, and there's a very specific reason for it.

Many stock traders are worried that Democrats could regulate and restrict tech companies

When the stock market rose following Tuesday's midterm elections, it appeared to signal relief among traders that Democrats controlling the House and Senate would lead to more stability for the stock market. Instead, it seems that traders are actually becoming a bit fearful of a Democrat-run House and Senate .

What appears to be driving the massive sell-off on Thursday are worries that a Democratic congress could potentially increase regulation and restrictions when it comes to data centers . Many tech companies saw their stock prices rise meteorically over the past year or so, ever since the advent of AI and data centers.

If there are more regulations around building and maintaining the already existing data centers and potential new ones, that could very well lead to financial losses for a lot of the aforementioned companies . That's all speculation at this point in time, though. Following a true panic on Thursday morning, the stock market began rebounding at least slightly as the day went on .