S&P 500 futures steady after midterm rally; Nasdaq lags on chip weakness - Yahoo Finance
The Nasdaq Composite experienced a significant decline following Democratic midterm victories, driven by fears of stricter AI regulation. Investors are concerned that new policies could hinder the rapid expansion of AI infrastructure.
Why it matters
Regulatory uncertainty regarding AI infrastructure is creating volatility in the tech sector and impacting major chip manufacturers.
Nasdaq posts biggest daily drop in 19 months on fears of AI regulations By Noel Randewich and Utkarsh Hathi Fri, November 6, 2026 at 5:26 AM GMT+8 3 min read ^IXIC -5.52% ^GSPC -4.36% NVDA +4.53% By Noel Randewich and Utkarsh Hathi
Nov 5 (Reuters) - The Nasdaq Composite ended sharply lower on Thursday, notching its deepest one-day drop in 19 months and confirming it was in a correction, as chipmakers sank on fears of tougher AI regulation after Democrats won control of the US Congress.
Democratic wins on Tuesday, including in states where opposition to new data centers has mounted, fueled concerns that tighter regulation could slow the AI infrastructure buildout that has helped lift stocks to record highs this year.
Nvidia dropped over 9%, while the Philadelphia SE Semiconductor index plunged over 12%.
The selloff evaporated $3 trillion in stock market value from S&P 500 companies.
Also covering this story
One other newsroom covered this event. We read that version too.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in