Major tech stocks plunge following Democratic US midterm election victories

Major technology and artificial intelligence stocks suffered severe losses following the United States midterm elections, the BBC reported. The tech-heavy Nasdaq composite stock index closed down by more than 5.5 percent, erasing an estimated 2.5 trillion dollars in market capitalisation according to Dow Jones data. The sell-off marked the worst single day for key US stock indexes since 2025. [1]

The market drop occurred after Democratic election campaigns focused on slowing artificial intelligence development yielded wins, according to the BBC. Investors are reacting to fears of an AI slowdown and potential tougher government scrutiny over data centre construction and the tech sector. [1]

As FTMQ News reported earlier, technology shares had already faced downward pressure in late October after disappointing financial results from major American firms. Amazon missed analyst expectations for quarterly revenue and profit, Intel issued a lower earnings forecast, and Alphabet shares fell over 12 percent after reporting slower advertising revenue growth. [3]