Global Tech Stocks Plunge on AI Regulation Fears After US Midterms

Global technology stocks suffered sharp losses amid fears that Democratic gains in the US midterm elections could lead to stricter artificial intelligence regulation, prompting investors to seek safety in bonds. Japan's Nikkei fell 6%, while South Korean and Taiwanese markets dropped over 8% before paring losses. The Nasdaq plunged 5.5%, erasing about $3 trillion in S&P 500 market value. Chipmakers Samsung, SK Hynix, and TSMC fell significantly, while margin calls increased. Authorities in South Korea and Taiwan moved to calm markets, with Taiwan's index closing down 4.5% for its worst weekly drop since 1991. Analysts noted the selloff reflected overly optimistic AI stock valuations and growing local opposition to data centers. Texas Governor-elect Gina Hinojosa announced legislation to protect communities from data center impacts. Some experts suggested the selloff may be nearing its final phase, while bond yields fell as investors sought safe havens.