Wall Street slides as Nasdaq drops over 5% on Democratic midterm win

Wall Street experienced a broad decline on Thursday, with the Nasdaq technology index falling over 5 percent at one point, marking a dramatic market drop. Experts attribute the selloff to the Democratic Party's victory in the US midterm elections. The Nasdaq had fallen more than 5 percent by 5 PM but recovered somewhat by 6:15 PM. Senior strategist Joachim Bernhardsen at Nordea called the decline dramatic and rare, noting very negative sentiment. Investors are dumping tech stocks, with Nvidia down over 8 percent, as the market nears a correction. Bernhardsen points to fears that Democrats will tighten regulations on data center construction, potentially slowing the AI boom. He says it is too early to declare an AI bubble, adding that short-term falls of 5 to 10 percent are not unusual and involve panic selling.