US Stocks Tumble as Chip Shares Lead Selloff
SingTao · 1 SOURCESabout 8 hours ago2 MIN
Summary
US equities fell sharply on Thursday, November 5, after investors reacted to the Democratic Party’s victory in both the Senate and House in the US midterm elections. The selloff centred on technology and semiconductor stocks, as markets worried that stricter oversight of AI and data-centre development could weaken future chip demand. During Hong Kong time shortly after midnight on Friday, November 6, the Nasdaq Composite was down about 5% and the Dow Jones Industrial Average had fallen more than 1,290 points, before losses deepened into the close. By the end of trading, the Nasdaq had dropped 1,421 points, or more than 5.5%, the Dow had lost 1,833 points, or 3.4%, and the S&P 500 had fallen 334 points, or 4.3%
Key Points
- The market rotation that began after the election result extended into a second day, with technology and semiconductor shares remaining under sustained pressure
- Around 12am Hong Kong time, Nvidia fell as much as 8%, Microsoft dropped 4%, and Apple was down 0.5% during the broad tech selloff
- By about 2am Hong Kong time, the Nasdaq’s decline widened to 5.37%, while the Dow was down 1,696 points, or 3.18%
- SingTao said concerns focused on tougher regulation of US data centres, especially after Democrats won Texas and Georgia, two major AI data-centre hubs
- Research firm SemiAnalysis estimated Texas could account for about one-quarter of US computing capacity expected to be operating by 2030
Why It Matters
For Hong Kong investors, the move underscores how quickly US political developments can spill into global technology valuations, especially for semiconductor and AI-linked names that are widely held across regional markets. It also points to a new policy risk for the AI supply chain: if data-centre approvals and construction slow, expectations for chip demand, cloud expansion and related power infrastructure could all be reassessed