Global markets tumble as AI bubble fears and tech sell-off hit stocks worldwide

Global stock markets are experiencing significant turmoil as technology shares face massive sell-offs, triggered by the Democratic victory in the US midterm elections. The Nasdaq 100 index has dropped nearly 15% from its October 6 record high, accelerating a correction underway for several weeks. The "Magnificent Seven" tech giants—Apple, Microsoft, Google, Amazon, Meta, Nvidia, and Tesla—have seen their combined market value shrink by 9.5%, erasing approximately $2.4 trillion. Notable declines include Nvidia at -24%, Alphabet at -18%, and Meta at -16.5%. The shockwaves have spread to Asia, with Tokyo's Nikkei 225 falling over 20% from late June peaks and Seoul's Kospi plunging about 45%. The sell-off is driven by expectations of stricter regulation in Washington, hitting AI leaders particularly hard. Chipmaker Nvidia fell 9.3% on Thursday, its worst daily drop since January 2025, while AMD plunged 17.3%, Broadcom lost 10.4%, and Oracle declined 6.9%.