Global stock markets plunge following US election results

A massive sell-off triggered by the Democratic Party's victory in the U.S. midterm elections on November 3, 2026, caused a significant market rout on November 5. Wall Street suffered its worst daily losses in 19 months, with the Nasdaq Composite falling 5.52% to 24,315 points, the S&P 500 dropping 4.36% to 7,353.73, and the Dow Jones Industrial Average losing 3.44% to close at 51,523. Estimates suggest between $2.5 trillion and $3 trillion in market value was wiped out from U.S. indexes in a single session.

The downturn, which bled into Asian markets on November 6, was centered on artificial intelligence and technology stocks. Major losses were recorded by Qualcomm (-14%), Nebius (-17%), and CoreWeave (-12%), while Nvidia lost approximately $450 billion in market capitalization. Investors expressed fear that the new Democratic majority in Congress would impose stricter regulations on AI infrastructure and data centers. Former President Donald Trump attributed the financial instability to the election outcome, while Asian indexes, including Japan's Nikkei 225 and South Korea's Kospi, experienced severe declines, with some temporary trading halts reported.

Markets globally remain in a state of adjustment as investors grapple with the uncertainty regarding the future regulatory landscape for the AI sector. European markets also reacted negatively, with the STOXX Europe 600 falling 1.40% as the ripple effect of the U.S. technology sector crisis continued to impact global investor sentiment.