Global Markets Plunge $2.5 Trillion on Texas Election Fears

Global markets plunged Thursday as Wall Street lost approximately $2.5 trillion in market value, driven by fears that Democratic gains in the US midterm elections could hinder artificial intelligence development. South Korea's Kospi fell nearly 9% Friday, triggering a 20-minute trading halt, after the Nasdaq dropped 5.52% into correction territory. The selloff marked the worst day for major indices since April 2025, with chipmakers and data center stocks hit hardest, including Nvidia falling 9.3%. A key factor was the Democratic victory in the Texas governor's race, as Governor-elect Gina Hinojosa campaigned on a temporary moratorium for data centers and eliminating tax incentives. The VIX volatility index surged about 70%, while Treasury yields fell to a two-month low as investors sought safer assets.