Global Tech Stocks Plunge on AI Regulation Fears After US Midterms

A major selloff in technology stocks has hit global markets following the US midterm elections, with the Nasdaq 100 suffering its worst daily loss since the 2020 coronavirus crash and erasing about $2.3 trillion in market value. The decline is driven by fears of stricter artificial intelligence regulation under the victorious Democrats. Chipmakers were hit hardest, with Nvidia falling 9.3 percent and storage companies like Seagate and Western Digital dropping up to 22 percent. The selloff spread to European markets, including Germany's DAX, while Swiss stocks like ABB and VAT also felt the impact. Investors worry that Democratic policies could slow investments in AI data centers, which face criticism over energy consumption and environmental concerns. Analysts largely view the crash as a correction of overvalued expectations rather than a failure of AI technology itself. While the fundamental value of AI remains undisputed, the timeline for massive infrastructure investments to generate returns is now questioned. For private investors, the decline is noticeable since tech giants make up over 20 percent of standard global index ETFs, though experts advise long-term savers to remain calm.