Global markets plunge following US midterm election results

Global stock markets are experiencing a severe sell-off following the results of the U.S. midterm elections held on November 3, 2026, which saw the Democratic Party secure control of both the House of Representatives and the Senate. The market turmoil began on November 5, 2026, with the Nasdaq index dropping by 5.52%, triggering a ripple effect across Asian markets the following morning.

In Asia, the South Korean Kospi index plummeted by more than 8%, leading to a temporary suspension of trading, while Japan's Nikkei index recorded losses of approximately 6%. Investors are reacting to concerns that the new political alignment in Washington will lead to stricter regulation of artificial intelligence and potential restrictions on data center investments, which have previously fueled a massive stock market rally. Hundreds of billions of dollars in market value have been wiped out as the technology-driven sell-off spreads to banking and industrial sectors.

President Donald Trump has publicly blamed the Democratic party for the stock market decline, citing their electoral victory as the direct cause of the financial volatility. Market participants remain anxious as they recalibrate their expectations regarding the future of AI infrastructure investment under the new legislative landscape.