US Stocks Plunge as Democrats Win Congress; Tech Sector Hit Hardest

American stock markets fell sharply on Thursday, November 5, driven by massive sell-offs in the technology sector and uncertainty over post-election economic policies. The Nasdaq lost about 5%, while the Dow Jones dropped over 1,500 points, temporarily erasing roughly $2.5 trillion in market value. Companies involved in artificial intelligence, semiconductor production, and data centers were hardest hit, with investors reducing exposure amid fears of slowing AI infrastructure investment. Qualcomm's weaker revenue report and Democratic victories in Congress, raising concerns about stricter tech regulations, contributed to the decline. Investors shifted capital into safe-haven US government bonds, pushing ten-year yields to their lowest level since September 9, while the VIX volatility index surged. The S&P 500 headed toward its worst session since April 2025, though markets showed some signs of recovery later in the day.