Global Tech Stocks Tumble on US AI Regulation Fears

US stocks plunged Thursday, with the Nasdaq falling 5.5 percent, after Democratic victories in the US midterm elections sparked fears of stricter AI regulation. The selloff continued in Asia on Friday, with South Korea's Kospi dropping over eight percent. Investors worry Democrats, who won both congressional chambers, will impose tougher rules on the tech sector, particularly targeting data centers crucial for AI due to their high energy and water use. Chipmakers like Nvidia fell nine percent, while storage firms Seagate and Western Digital dropped up to 22 percent. Rising oil prices after reported tanker damage in the Strait of Hormuz added pressure. The Seoul exchange halted trading for 20 minutes to curb panic selling, and South Korea's government held an emergency meeting, calling fundamentals solid.