Global markets tumbled as investors weighed the possibility of tighter U.S. technology regulation after the midterm elections. (Foto: Instagram)
Global markets fell sharply on Friday, Nov. 6, as investors worried that a Democratic “blue wave” in the U.S. midterm elections could disrupt the worldwide investment boom in artificial intelligence. Technology shares led the losses following a steep sell-off on Wall Street the previous evening, as concerns about the direction of U.S. regulation spread across markets.
The downturn was immediate in Asia-Pacific, where major indexes posted broad declines. The Nikkei in Japan dropped nearly 6%, its worst daily performance since the tariff shock of April 7, 2025. South Korea’s KOSPI fell 6.7%, while Taiwan’s TAIEX ended down 4.5%. Semiconductor and hardware-component makers led the losses in Taiwan.
The sell-off followed a session in which more than $3.2 trillion in market value was wiped from New York-listed stocks. The scale of the decline underscored investor pessimism about the future pace of technology expansion. Christopher Forbes, CMC Markets’ head of Asia and the Middle East, described trading conditions as “a real disaster.”
Forbes said many of the firm’s clients had taken heavily leveraged positions in technology stocks and indexes. They faced margin calls throughout the day, forcing them to liquidate positions amid heightened anxiety and surprise over the election result. Those sales added to pressure on shares as investors reassessed the outlook for the sector.
Analysts said markets were beginning to price in a possible structural shift in U.S. public policy, rather than simply a short-term correction in asset prices. Expectations of a Congress controlled by Democrats point to tighter regulation that could slow investment in major infrastructure, impose environmental and operational limits on new data centers, and restrict technology companies’ access to capital markets.
The election shock also intensified concerns that had been building for months about high valuations among artificial intelligence companies. Fears that a speculative bubble might be ending prompted a broad retreat by U.S. investors. The Nasdaq plunged 5.5%, the Dow Jones Industrial Average lost 1,833.06 points, or 3.44%, and the S&P 500 fell 4.36%.
Nvidia shares dropped more than 9%. Shares of SanDisk, Micron, and AMD fell between 17% and 22%. With volatility high and expectations shifting, the report said investors should exercise extreme caution in upcoming trading sessions. Attention was also turning to the latest official U.S. jobs report, which investors use to gauge the economy’s health and assess the Federal Reserve’s next interest-rate steps.
