US Stocks Plunge as AI Shares Shed $2.5 Trillion on Regulation Fears

US stock markets suffered their biggest decline in 19 months on Thursday, triggered by fears of stricter AI regulation following the Democratic Party's majority in the US midterm elections. Investors lost approximately $2.5 trillion in a single day. The Nasdaq-100 led the selloff, with Nvidia shares falling 4% and SpaceX dropping 9%, while Meta, Amazon, and Google also declined. The rout spread to Asian markets, with South Korea's KOSPI and Japan's Nikkei falling 6%, and Taiwan's TAIEX dropping 4.5%. Democrats plan to introduce bills targeting AI systems and data center expansion, focusing on protecting consumers from rising electricity costs and requiring independent testing of advanced AI systems. Indian markets remained relatively resilient due to limited AI infrastructure exposure, supported by foreign institutional buying of about 15,000 crore rupees and crude oil prices falling below $100 per barrel.