The technology-sector sell-off, sparked by U.S. midterm election results, accelerated into a global rout on November 6. Fears that a new Democratic-led Congress would impose strict artificial-intelligence regulations and restrict data centers drove investors away from high-growth technology stocks.
Asian markets fell sharply. Japan’s Nikkei 225 plunged 5.96%. South Korea’s KOSPI dropped 5.46%, triggering market circuit breakers.
Major chipmakers, including Samsung Electronics and SK Hynix, also posted steep declines. Amid regulatory uncertainty, investors began to price in the possibility that the AI investment cycle had peaked.