US election markets rattled: Selling wave spreads worldwide.

The sharp sell‑offs that occurred on Thursday, November 5, in U.S. markets changed global investors' risk perception. Questions about the future of investments in the artificial‑intelligence sector and the new political landscape that emerged after the midterm elections led to large value losses in the shares of technology companies.

The three major Wall Street indices posted their worst daily performances since April 2025. The technology‑heavy Nasdaq fell 5.5%, recording the steepest single‑day loss in the last 19 months. With a decline of more than 10% from its recent peak, the index entered a technical correction phase.

On the same day, the S&P 500 lost 4.4%, while the Dow Jones index fell by more than 1,800 points, slipping about 3.4%.

The concentrated sell‑offs in technology stocks caused a loss of roughly $2.5 trillion in Nasdaq's total market value. Thus, the gains seen in the market on Wednesday after the election results were wiped out.

Artificial‑Intelligence Companies Became the Focus of Sales

In the Wall Street decline, the biggest blow was taken by companies operating in artificial‑intelligence, semiconductor, and data‑center infrastructure sectors.

The Democrats securing a majority in the House of Representatives and Senate in the midterm elections has raised concerns that regulations targeting the technology sector could become tighter. Investors are assessing that potential restrictions on data center projects could slow growth in the artificial‑intelligence sector.

All 11 sectors within the S&P 500 closed the day lower, with the steepest losses seen in companies tied to artificial‑intelligence infrastructure.

Shares of Micron Technology and Advanced Micro Devices (AMD) fell about 17 percent. CoreWeave, which provides artificial‑intelligence cloud infrastructure, saw a 10‑percent decline.

The group of high‑market‑cap technology firms known as the "Great Seven" also could not escape selling pressure. Nvidia shares lost 9 percent, erasing the gains they had accumulated since the beginning of 2026.

The total market‑value loss of the seven major technology companies exceeded one trillion dollars.

Losses on Wall Street Shifted to Asian Markets

The sales wave that began in the U.S. also showed its effect in Asian markets on Friday, November 6. Sharp declines were recorded in the South Korean, Japanese, and Taiwanese exchanges, where technology and chip manufacturers carry significant weight.

South Korea's circuit‑breaker mechanism was triggered when losses on the Kospi index exceeded 8% within the day, temporarily halting trading.

In the regional market decline, the expectation that data‑center investments in the U.S. could slow down—and that this could negatively affect demand for Asian chip makers—proved decisive.

European Markets Also Turned Red

The growing global sales pressure also reflected in European exchanges. On Friday, almost all of the continent's leading indices finished the day in the red.

The pan‑European Stoxx 600 index fell 1.39%, while Germany's DAX dropped 1.56%. The UK's FTSE 100 lost 1.59%, and France's CAC 40 slipped 1.18%

Spain's IBEX 35 index fell 0.49%, and Italy's FTSE MIB index slipped 1.18%.

In European losses, sharp declines in U.S. technology stocks, as well as uncertainties about the sustainability of artificial‑intelligence investments, were influential.

Trump Blamed the Market Decline on Democrats.

U.S. President Donald Trump pointed to the Democrats who had gained significant ground in the mid‑terms as responsible for the sharp market pullback.

Speaking from his Truth Social account, Trump claimed that the election results had caused historic losses in the market. He lamented the sharp pullback of markets that had been rising for a long time and noted that Americans' individual retirement accounts (401(k)s) were also affected by the downturn.

Trump targeted his political rivals by insisting that the Democrats, not the Republicans, were to blame for the losses. Nevertheless, he tried to reassure investors that the U.S. economy and financial markets would recover.

However, the decline in markets is not driven solely by election results. Concerns about how profitable artificial‑intelligence investments will be, the high valuations of tech firms, and financing costs are also cited as factors that are increasing selling pressure.

Investors are watching the Fed’s decisions and AI investments.

After the sharp fall on Wall Street, investors are focusing on the future of tech‑sector spending and developments related to U.S. economic policy.

Whether data‑center investments will continue, the financing needs of tech firms, and expectations about the Fed’s interest‑rate policy are among the key headlines that could shape market direction.

In addition, geopolitical developments in the Middle East and volatility in oil prices are further heightening uncertainty in global markets.