A global wave of sell-offs, wiping out trillions of dollars in market value and bringing back memories of the biggest crises of recent years, is sweeping through markets from Wall Street to Tokyo, Seoul, and Taipei. The explosive rise in stocks linked to artificial intelligence has given way to a violent sell-off, as investors reassess the valuations of tech giants and the prospects for massive investments in AI infrastructure.
The Democrats’ victory in the U.S. midterm elections served as a catalyst, fueling concerns that the new balance of power in Congress could lead to stricter regulation of artificial intelligence and restrictions on the construction of new data centers. This is an industry that has attracted hundreds of billions of dollars, underpinning much of the stock market rally of recent months.
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The result is a domino-effect collapse of tech stocks, which is now dragging down nearly the entire market—from banks and industrials to smaller companies.
Asia: Plunge of up to 9%, trading halted in South Korea, Tokyo heading toward a bear market
Asia is at the epicenter of the turmoil, where stock markets are following yesterday’s plunge on Wall Street, with semiconductor companies facing the heaviest pressure.
In Japan, the Nikkei 225 fell as much as 7.1% during the session, hitting 56,745.81 points, before recouping some of its losses. At the midday break, it stood at 57,858.61 points, down 5.27% or 3,219 points. The index’s decline from its June high temporarily reached 20%, bringing it to the threshold of a technical bear market.
Trump: “It wasn’t the Republicans’ fault, but the Democrats’”
U.S. President Donald Trump chose to directly link the stock market decline to the outcome of the November 3 election, in which the Democrats secured control of both the House of Representatives and the Senate.
In a post on Truth Social, Trump claimed that the markets suffered one of the worst trading sessions in their history due to his opponents’ electoral victory.
“The stock market suffered one of the worst days in its history because of the election results. It’s so sad to see! It took so much effort to reach a level that no one had ever seen before, and then this happened. “As a result, your retirement savings in 401(k) plans have decreased,” he wrote.
Trump didn’t stop at criticism; he also used a derogatory term for the Democrats, paraphrasing the name of their party. “Remember, it wasn’t the Republicans, it was the ‘Dumocrats,’” he said, using a pun on the word “dumb,” which means “foolish.”
At the same time, he sought to reassure investors, promising that the market would recover under his leadership: “Don’t be afraid, though. Soon, one way or another, we will be BIGGER AND STRONGER THAN EVER.”
Source: Protothema.gr
