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Nasdaq 100 plunges 6.5%, erasing $2.3T after AI regulation fears post-midterm elections

Market News
06 Nov 2026, 13:05 WIB
Seeking Alpha
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Bearish
Nasdaq 100 plunges 6.5%, erasing $2.3T after AI regulation fears post-midterm elections

Following the midterm elections, initial optimism pushed the Invesco QQQ Trust higher, but the Nasdaq 100 sharply reversed, plunging 6.5% and wiping out $2.3 trillion in market value. The biggest losses hit AI and semiconductor stocks, with the iShares Semiconductor ETF dropping 12.1%. This sell-off was driven by concerns over potential increased regulation of the AI sector, including possible moratoriums or delays in data center construction. Investors are now cautious as regulatory risks cloud the outlook for tech and AI industries.

The iShares Semiconductor ETF (SOXX) holds a market cap of $37.56 billion and saw a volume of 65,770,030 shares traded as of Nov 06, 2026 18:21 WIB. Despite the article's mention of a 12.1% drop, SOXX is up 3.70% on Pluang at that time, with a typical hold time of 52 days and order activity showing 60% buy and 40% sell. This contrasts with the reported sell-off concerns around AI and semiconductor stocks.

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