US stocks plunge on Democratic midterm wins, AI regulation fears

US stocks experienced a major selloff, particularly in technology shares, following Democratic victories in the US midterm elections, driven by fears of increased artificial intelligence regulation. The Nasdaq 100 fell 6.36 percent, erasing $2.3 trillion in market value. The S&P 500 dropped 4.36 percent, its largest daily loss since April 2025, while the Dow Jones Industrial Average fell 3.44 percent. Investors shifted funds into safe-haven government bonds, reacting to the potential for stricter oversight of the tech sector under the new Democratic congressional majority. The tech index had reached a record high in October, fueled by optimism over AI business prospects, and remains up 5.5 percent for the year. The broader S&P 500 is still up 7.2 percent year-to-date.