Global Tech Stocks Plunge Following US Election Results

A massive stock market rout has wiped hundreds of billions of dollars from the valuations of major technology firms across the United States and Asia. The sell-off, which marks one of the worst trading days since 2025, was triggered by uncertainty following the US midterm elections and growing fears that the rapid expansion of artificial intelligence infrastructure may face significant regulatory headwinds. The sell-off comes on top of broader concerns about whether the huge amounts being spent on AI will pay off.

The tech-heavy Nasdaq Composite index finished the day down by more than 5.5%, shedding an estimated $2.5 trillion in market value. The index has now entered what analysts define as correction territory, meaning its value has dropped at least 10% below its recent peak. Broader market indicators also suffered, with the S&P 500 falling 4.4% and the Dow Jones Industrial Average losing more than 3.4% of its value, effectively erasing the gains made during the previous session. Losing an estimated $2.5tn (£1.9tn) in market value, according to Dow Jones data, while other key US stock indexes also saw big losses in their worst, the tech-heavy Nasdaq composite index closed down by more than 5.5%.

Markets across Asia reacted sharply to the instability on Friday morning. In Japan, the Nikkei 225 plummeted 6% in early trading, with memory chip maker Kioxia shares falling by over 12.6% and Tokyo Electron sliding by 9.5%. South Korean markets saw similar volatility; SK Hynix shares dropped more than 11.5% and Samsung slipped by nearly 10%. The Kospi index in Seoul experienced such intense selling that a circuit breaker was triggered to temporarily halt trading.

Taiwan’s Taiex index declined by more than 8.3%, largely driven by a nearly 8.5% drop in shares of chipmaking giant TSMC. MarketWatch analyst Britney Nguyen characterized the volatility as a clear continuation of anxieties regarding current levels of spending on AI infrastructure. European markets were also affected, with chipmaker Infineon sliding more than 8.5% and equipment manufacturer ASML falling 6.5% during Thursday’s session. We answer your US midterms questions. Boebert, billionaires’ tax and other midterms races still to watch.

The sell-off was fueled by election outcomes where Democratic candidates, who campaigned on slowing the growth of energy-intensive data centers, secured control of both the US Senate and the House of Representatives. Throughout the country, numerous ballot measures aimed at curbing the development of these AI hubs gained momentum. Texas governor-elect Gina Hinojosa led a high-profile campaign against data center expansion, pledging a moratorium on new construction in the sector.

Democratic Senator Bernie Sanders echoed these sentiments on social media, demanding a national data center moratorium and arguing that tech oligarchs are threatening the environment and the future of the workforce. Some Democrats have contended that the AI industry has expanded without sufficient oversight and have promised to implement stricter safeguards with their newfound congressional control. Remember, it wasn’t Republicans, it was Dumocrats. Food, fuel and taxes – can the Democrats actually make life cheaper. Gutting jobs and threatening humanity’s future, americans don’t want Big Tech oligarchs wrecking the environment.

Companies with high exposure to AI infrastructure and semiconductor production bore the brunt of the losses. Nvidia shares fell by more than 9%, erasing over $400 billion in market value. Other chipmakers saw deeper declines; AMD and Micron both fell by more than 17%, while Intel dropped 10.3% and SanDisk plunged over 22%. The Philadelphia Semiconductor Index, representing 30 major producers, saw a decline of more than 12%.

Elon Musk’s companies also suffered significant losses, with Tesla dropping nearly 11% and SpaceX falling 8%, shaving over $300 billion from their combined market value. Musk had previously contributed nearly $450 million to Republican campaigns, including significant support for Ken Paxton’s Texas senate run, though the state ultimately shifted toward the Democratic ticket in Tuesday’s voting.

Former President Donald Trump responded to the market downturn on social media, blaming the decline on his political opponents. He characterized the market performance as one of the worst in history due to election results, asserting that while the slide was caused by the opposition, the economy would eventually recover to be stronger than before. Collectively, the “magnificent seven” tech firms, including Apple, Nvidia, and Tesla, lost a trillion dollars in market capitalization in a single day. Do not fear, however, we will soon, one way or the other, be BIGGER AND STRONGER THAN EVER BEFORE.