US stocks fall as AI regulation fears hit chipmakers

US stock markets closed sharply lower on Wednesday as fears of stricter artificial intelligence regulations triggered a sell-off in technology shares, particularly chipmakers. Investors fled equities and moved funds into safe-haven government bonds. The Nasdaq 100 plunged 6.36 percent to 26,629.81 points, erasing $2.3 trillion in market value and falling to April levels. The S&P 500 dropped 4.36 percent to 7,353.73, its worst daily loss since April 2025, while the Dow Jones Industrial Average fell 3.44 percent to 51,523.06. The sell-off followed Democratic victories in the midterm elections two days earlier, hitting chip stocks that had been major beneficiaries of the AI boom. Despite the losses, the Nasdaq 100 remains up 5.5 percent year-to-date, and the Dow has gained 7.2 percent.