Global Tech Selloff Deepens as AI Regulation Fears Hit Asian Markets

Democrats swept the US midterm elections, triggering fears of stricter AI regulation and halted data center construction, causing a global tech selloff. The Nasdaq posted its biggest one-day drop since April 2025, and the Philadelphia Semiconductor Index plunged 12.25%. Asian markets followed with sharp losses the next day. Japan's Nikkei fell 6% into a bear market, South Korea's Kospi triggered a circuit breaker, and Taiwan's market dropped 4.5%. Major chipmakers like SK Hynix and Samsung fell 10.4% and 6.4%, respectively. The S&P 500 lost over $3 trillion in market value, while the Nasdaq 100 shed $2.5 trillion. About 45% of planned data centers are in states where winning governors vowed to pause construction. Futures showed signs of stabilization, though analysts remain uncertain if this marks a broader correction.