Wall Street loses $1 trillion as AI slowdown fears hit tech stocks
Wall Street suffered its worst day since April 2025 on November 5, erasing over $1 trillion in market value, with President Donald Trump blaming Democrats for the plunge following midterm election results. The sell-off was driven by fears of an AI buildout slowdown, hammering chipmakers and infrastructure firms. The "Magnificent Seven" tech giants lost over $1 trillion in combined market cap, with Nvidia dropping over 9% and losing nearly $450 billion in a single day. Newly elected Democrats signaled plans to restrict data center expansion, citing environmental and community concerns. The rout spread to Asian markets on November 6, with Korea's Kospi triggering a circuit breaker and Japan's Nikkei falling 5.7%.