Major tech stocks plunge as US midterms sparks fears of AI slowdown
Major tech stocks in the US and Asia plummeted following the US midterm elections, where Democratic victories were linked to campaign promises to restrict AI development. The sell-off wiped out trillions in market value as investors grew concerned over the profitability of AI infrastructure spending.
Why it matters
This market rout highlights the growing tension between political regulation of emerging technologies and the massive capital investments currently driving the global tech economy.
Image source, Bloomberg via Getty Images By Rachel Clun , Reporting from New York and Osmond Chia , Reporting from Singapore Published 5 November 2026 Updated 1 hour ago Hundreds of billions of dollars in market value has been wiped from major tech firms in the US and Asia in a stock market rout after the US midterm elections sparked concerns of a slowdown in artificial intelligence development.
Shares in firms across the tech and AI sectors plummeted following Democratic wins after election campaigns run on slowing AI.
The tech-heavy Nasdaq composite index closed down by more than 5.5%, 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 days since 2025.
The sell-off comes on top of broader concerns about whether the huge amounts being spent on AI will pay off.
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