AI selloff hits global markets after Democratic midterm sweep

· Economy · United States

Global markets convulsed this week as months of unease over the AI boom erupted into a $5.7 trillion rout. Wall Street's Thursday selloff, its worst session since April 2025, sent the Nasdaq into correction territory; Apple, Tesla and Nvidia shed about $1 trillion in one session combined as investors feared slower AI development and new data-centre restrictions after the Democrats' midterm sweep. Asian and European shares fell sharply on Friday, with chipmakers such as SK Hynix, Samsung, SoftBank and TSMC tumbling. US stocks then rebounded modestly, and chip shares climbed, though AI doubts lingered. Tesla and SpaceX reportedly lost more than $420 billion in combined market value.

Why it matters：The selloff shows how quickly political shifts can reprice the AI investment boom that has powered stock markets and corporate spending worldwide.

Key points

  • Wall Street's Thursday drop was its worst session since April 2025.
  • Nasdaq fell into correction territory before a partial rebound.
  • Investors cite fears of more AI regulation and data-centre limits.

Sources (original reporting)

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