Global stocks tumble as AI panic grips markets after Democrats' midterm success

A sharp sell-off in technology shares spread from Wall Street across Asia and Europe after Democrats’ strong midterm-election performance raised investor fears that a Democratic-controlled Congress could restrict data centres and slow the expansion of artificial intelligence. The Nasdaq fell 5.5%, the S&P 500 lost 4.36% and the Dow dropped 3.44%; losses erased more than $3.2tn from US stocks. AI-linked chipmakers were hit especially hard: SanDisk fell 22%, Micron and AMD each lost 17%, and Nvidia dropped more than 9%. Japan’s Nikkei sank nearly 6%, South Korea’s Kospi fell 6.7% and Taiwan’s Taiex closed down 4.6%, while London’s FTSE 100 and major European indices also declined.

The coverage argues that election-related policy concerns amplified existing doubts about stretched AI valuations and whether enormous investments in chips and data centres will deliver adequate returns. Recent results from major technology companies have disappointed growth expectations, with signs that AI spending may be slowing; many firms have borrowed to finance the buildout. The sell-off was severe, but most major indices remain higher for 2026: the Nasdaq is up 4.6% and the FTSE 100 nearly 6.9%, while South Korea’s Kospi remains up more than 29%. Donald Trump blamed Democrats for the market fall. Elsewhere, UK house prices unexpectedly dropped 0.6% in October, their largest annual decline since 2023. Investors were also awaiting US employment and consumer-confidence figures for clues about the economy.