Global markets tumble as chip stocks crash, Kospi halts, Europe retreats

Global markets tumbled on November 5 as a massive sell-off in AI and semiconductor stocks erased the post-election rally, with Wall Street suffering its worst session since April 2025 and the Nasdaq entering a correction. The Dow Jones Industrial Average fell 1,833.06 points, or 3.44 per cent, to 51,523.06, while the S&P 500 dropped 4.36 per cent and the Nasdaq Composite lost 5.52 per cent, closing 11.9 per cent below its record. Nvidia fell about 9.3 per cent, and the Philadelphia Semiconductor Index plunged more than 12 per cent. Asian markets followed sharply, with South Korea's Kospi triggering a circuit breaker after dropping 8.55 per cent, and Japan's Nikkei 225 falling 5.7 per cent. Analysts attributed the sell-off to political factors rather than weakening AI demand, citing Democrats' congressional wins and Texas Governor-elect Gina Hinojosa's pledge to pause data-centre approvals. Julius Baer noted demand still outstrips supply, with hyperscalers expected to invest over $1 trillion annually through 2028, while European shares reversed gains after Wall Street opened, with the Stoxx 600 closing 0.38 per cent lower.