Tech giants lose $1 trillion in one day after Democrats victory in midterms

A wave of selling across global markets with technology stocks bearing the brunt. On Wall Street Thursday, the tech-heavy Nasdaq closed down 5.52% and ended the day in correction territory. The Dow Jones and S&P 500 also suffered major losses. All three posted their worst days since April 2024. So the sell-off today, I think, is a confluence of a number of factors. There's one is. Concerns about financing of data centers and that's been exacerbated by the blue tsunami in Congress, which at the margin should make data centers harder to permit, put up obstacles to them. Many Democrats who posted historic wins Tuesday campaigned on the slowdown of AI development and data center construction. Most notably, Texas Governor-elect Gina Mendoza. Texas has been the poster child of the change there with a new Democratic governor threatening a moratorium on future build outs. And I think that's really creating angst among investors about how quickly. In a social media post, U.S. President Donald Trump said the downturn was, quote, such a sad thing to watch. Semiconductor corporation NVIDIA also saw its shares sink. All this comes as cloud developer Anthropic is expected to make its stock market debut this month. The massive sell-off sent shockwaves overseas. On Friday, Taiwan ordered its financial regulator to stabilize its tech-heavy stock market after shares in chip-making giant TSMC plummeted. A plunge in South Korea's benchmark KOSPI stock index triggered a temporary trading halt at its market open, and Japan's Nikkei share average had its worst weekly performance since 2020.