Overview
- Markets staged a broad sell-off on Thursday after results showed Democrats will control both chambers of Congress, with the Nasdaq down about 5.5%, the S&P 500 down roughly 4% and the Dow down about 3%.
- Chipmakers and AI‑linked firms took the heaviest losses: Nvidia fell near 9%, the semiconductor index plunged about 11%, and memory and chip names such as Micron and AMD dropped double digits.
- The shock spread worldwide as Asian markets opened sharply lower, the Nikkei fell more than 5–6% and South Korea’s Kospi plunged about 8.5%, triggering a 20‑minute trading suspension to curb panic selling.
- Political developments sharpened the risk case: Democratic state wins in Texas that promised moratoria on new data centers and public vows from progressive House leaders to summon AI executives have increased the chance of tighter rules and oversight in 2027.
- The sell-off wiped away large market value and cut tech executives’ paper wealth, and it raises the real prospect that slower data‑center growth would curb future demand for chips and cloud capacity so investors should watch congressional actions, state permitting fights and corporate commitments on energy and siting.