Global Markets Plunge Amid AI Regulation Fears

Global stock markets experienced steep declines following the Democrats' success in the U.S. midterm elections, as investor concerns mounted over potential increased regulatory scrutiny of artificial intelligence and data center development. Japan's Nikkei recorded its largest single-day drop since April, falling 6%, while benchmark indices in South Korea and Taiwan plunged more than 8% before recovering modestly. The Nasdaq fell 5.5%, with $3 trillion erased from S&P 500 firms’ market value. Technology stocks were particularly affected, including major losses for companies such as SpaceX, Intel, and Tesla. South Korean semiconductor giants like Samsung Electronics and SK Hynix dropped over 10% in pre-market trade, and the Seoul Economic Daily reported a 12% plunge in the chip index driven by panicked selling over AI regulatory concerns. The downturn reflects widespread investor anxiety that Democratic victories in key states may result in stricter oversight and potentially slower expansion of AI infrastructure. Market analysts note that while concerns exist, the impact on current projects may be limited.