U.S. Stocks Plummet as Nasdaq Falls 5.82% Amid Democrat Victory and AI Data Center Regulation Concerns

Key summary

U.S. stocks experienced a significant decline last night, particularly in the technology sector related to AI. The Nasdaq index fell by 5.82%, the largest drop since April 4, 2025. The "7 Heavenly Stocks" lost over $1 trillion in value, with NVIDIA falling by $440 billion. Concerns about Amazon and Alphabet's high debt and negative cash flow are also weighing on the market. Following the Democrats' majority in both the Senate and the House of Representatives, there are concerns about potential policies to regulate data centers, which is impacting the Asian stock market. On Friday, SK Hynix fell by 8%, Samsung Electronics fell by 7%, SoftBank fell by 11.6%, and Advantest fell by 12.2%. Source: The Wall Street Journal and CNBC.