Tech stocks crash as AI regulation fears hit after midterms
Global tech stocks plunged on 5 November after US midterm results raised fears of tougher AI and data-centre rules, with the Nasdaq falling more than 5% and wiping an estimated $2–2.5 trillion in market value, according to BBC and NPR citing market data.
Global tech stocks plunged on 5 November after US midterm results raised fears of tougher AI and data-centre rules, with the Nasdaq falling more than 5% and wiping an estimated $2–2.5 trillion in market value, according to BBC and NPR citing market data.
Chipmakers led the sell-off: Nvidia fell more than 9%, while AMD and Micron dropped over 17%, AP and BBC reported. The S&P 500 fell about 4.4% and the Dow about 3.4% in their worst sessions since April 2025.
Investors pointed to Democratic wins in Congress and state races that featured campaigns against rapid data-centre expansion. The losses deepen a broader debate over whether huge AI spending will pay off.
The sell-off spread to Asia on Friday: Japan’s Nikkei closed down 6%, South Korea’s Kospi fell 6% after a circuit breaker briefly halted trading, and chipmaker SK Hynix lost more than 10%. In Europe, the FTSE 100 fell nearly 2% and Germany’s Dax 2.4%, with smaller declines because those indexes hold fewer tech stocks. The Nasdaq entered correction territory, though it remains above its level a year ago, BBC reported.