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AI and chip stocks plunge as markets react to Democrats' midterm election win and potential AI regulation.

05 Nov 2026, 23:02 WIB
Fox Business
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Bearish
AI and chip stocks plunge as markets react to Democrats' midterm election win and potential AI regulation.

U.S. stocks sharply declined following the midterm elections, with the Dow down 3.44% and the Nasdaq falling 5.52%, entering correction territory. The sell-off was driven by concerns that Democrats' election victories could lead to stricter AI regulations and slower data center development, impacting AI infrastructure growth. Major tech and chip companies like Nvidia, Meta, Amazon, and Alphabet saw significant losses, along with data center operators and energy suppliers tied to AI. Investors are reassessing growth expectations amid fears of increased costs and regulatory hurdles for AI expansion.

Following the midterm election results that sparked concerns over AI regulation, major tech stocks on Pluang show notable declines. Nvidia shares dropped 9.33% to USD 181.45, while Meta fell 4.30% to USD 602.88 as of Nov 06, 2026 04:21 WIB. Amazon also saw a 2.62% decrease, trading at USD 259.05, reflecting cautious investor sentiment on the platform.

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