Global Markets Tumble as Democrats' Midterm Win Sparks AI Regulation Fears

Global stock markets plunged Thursday after the Democratic Party's landslide midterm victory, with technology shares suffering their worst losses in over a year. The Nasdaq fell 5.52% into correction territory, while the S&P 500 dropped 4.35% and the Dow Jones lost 3.44%. Investors fear the election results will lead to stricter regulation of artificial intelligence, as newly elected Democrats campaigned on slowing data center construction. Chipmakers were hit hardest, with Nvidia losing 8.91% and AMD falling 17.39%, erasing roughly $800 billion from the "Magnificent Seven" tech giants. Defensive sectors like pharmaceuticals gained, and US Treasury bonds rose as safe havens. Oil prices rebounded over 3% on stalled Middle East peace efforts. Separately, German defense firm Rheinmetall plunged 16.19% after cutting its annual forecast for a second time.