Democratic Midterm Sweep Sparks Global AI Stock Sell-Off

Global stock markets tumbled as a Democratic sweep in the US midterm elections triggered a sell-off in AI-related stocks, wiping over $3 trillion from US markets and plunging Asian indices. The Dow fell over 1,800 points, with NASDAQ and S&P 500 also dropping sharply. Investors shifted away from technology stocks on fears of a slowdown in data-center buildout, while South Korea's Kospi index plunged 8.5 percent, triggering a 20-minute trading halt. Experts cite growing local opposition to AI infrastructure costs, including electricity and water resources, as a key driver. Analysts warn tighter regulatory scrutiny could fragment the US AI ecosystem, favoring established firms and raising entry barriers for smaller players. The developments may create opportunities for China, while raising questions about global AI competition and resource equality.