Global market selloff follows US midterm election results

Global financial markets experienced a severe downturn following the November 3, 2026, U.S. midterm elections, where the Democratic Party secured control of both the House of Representatives and the Senate. The volatility began on Wall Street on Thursday, November 5, with the Nasdaq index dropping 5.52%. According to Reuters, approximately $3 trillion in market capitalization was erased from the S&P 500 in a single session as investors rapidly divested from high-risk assets.

The selloff spread to Asian markets on Friday, November 6, where the South Korean Kospi index plummeted by over 8%, triggering a temporary suspension of trading, while the Japanese Nikkei fell by roughly 6%. Investors expressed concerns that the new political alignment in Washington could lead to stricter regulations on artificial intelligence and data center infrastructure, sectors that have been primary drivers of recent market growth. Donald Trump publicly blamed the Democratic party for the market losses.

The current downturn reflects fears that the rapid expansion of the AI sector may be nearing a turning point, with experts suggesting that political uncertainty regarding infrastructure investment is exacerbating the decline. Market analysts continue to monitor whether this volatility will stabilize or lead to broader economic repercussions across banking and industrial sectors.