Global tech stocks plunge on AI regulatory fears after US midterms

Briefing by News4U · First published 2026-11-06 09:30:48 UTC

Asian and European markets fell sharply on Friday after the Democrats’ midterm victory sparked fears of tighter US AI regulation. Japan’s Nikkei sank 6 percent, South Korea’s Kospi plunged more than 8 percent and Taiwan’s index closed down 4.5 percent. The Nasdaq Composite dropped 5.5 percent overnight, wiping $3 trillion off S&P 500 firms. South Korean authorities halted trading and eased retail leverage rules, while Chinese state entities bought equities to stabilise markets. Analysts said the sell-off reflects concerns that data-centre build-out will slow and that AI valuations had been built on “rosy illusions.” [1] [2] [3] [4]

Sources

1. Global tech stocks plunge over fears of AI curbs in US

   Al Jazeera · 2026-11-06 07:24:20 UTC · Summary only

2. Tech stock rout, driven by US AI fears, continues in Asian trading

   Al Jazeera · 2026-11-06 08:41:05 UTC · Full text

3. Global stocks plunge amid AI slowdown fears after Democrats’ midterm triumph

   The Guardian · 2026-11-06 08:58:22 UTC · Full text

4. HK stocks slip as tech rout spreads to Asian markets

   RTHK Finance · 2026-11-06 09:16:57 UTC · Excerpt

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