Tech stocks plunge as US midterm results fuel fears of tighter AI rules
Summary
Asian technology stocks fell sharply on Friday after a Wall Street sell-off linked to concerns that the Democrats’ midterm victories could lead to stricter AI rules and limits on data centre construction. Investors also worried about high borrowing costs, large AI investments and elevated company valuations.Key Facts
- The Nasdaq fell 5.5 percent, its worst percentage decline in a day since April 2025.
- The S&P 500 dropped more than 4 percent, while the Dow fell more than 3 percent.
- South Korea’s Kospi fell nearly 9 percent at one point; SK hynix dropped 10 percent and Samsung fell 8 percent.
- Tokyo’s market fell 7 percent, while Taipei’s Taiex dropped about 8 percent.
- The Philadelphia Semiconductor Index fell about 16 percent over the week, putting it on track for its worst run since April 2025.
- Many candidates who won in the midterm elections had pledged to slow data centre projects; Senator Bernie Sanders called for a nationwide pause on their construction.
- Investors also cited concerns about AI companies’ large investments, rising borrowing costs and high valuations.
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