Chip stocks slump sends Wall Street into worst session since April 2025
A sell-off in AI and chip shares wiped out post-election gains on Wall Street and sent Asian markets sharply lower.
US stocks suffered their steepest fall since April 2025 on November 5, as a sell-off in artificial intelligence and semiconductor shares erased the rally that followed the midterm elections. The Dow Jones Industrial Average dropped 3.44 per cent, the S&P 500 lost 4.36 per cent and the Nasdaq Composite fell 5.52 per cent, pushing it into a correction. Nvidia shares fell about 9.3 per cent, and the Philadelphia Semiconductor Index lost more than 12 per cent.
Analysts linked the sell-off mainly to political developments rather than weaker AI demand. Democrats won control of both chambers of Congress and key governorships, including Texas, which holds the largest US data-centre pipeline. The incoming Texas governor has pledged a moratorium on new data-centre approvals until lawmakers pass protections. Analysts said federal risk was overstated, while spending plans by large cloud providers remained intact.
Asian markets fell sharply. Japan's Nikkei 225 dropped more than 6 per cent at the open before recovering somewhat, and South Korea's Kospi fell 8.55 per cent early, triggering a circuit breaker. Samsung Electronics shed 7.9 per cent in morning trade. Singapore's Straits Times fell 2.3 per cent.