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Devastating crash in US stock markets
Wall Street slumps and trillion-dollar wipeout hits tech shares
Published : Friday, 6 November, 2026 at 11:21 AM
Observer Online Report
Collected Photo
US stock markets experienced a severe downturn, wiping trillions of dollars in market value from major technology companies as investor anxiety mounted over potential restrictions on artificial intelligence following the midterm elections.
The technology-heavy Nasdaq Composite dropped over 5.5 per cent by Thursday (5 November) close, shedding an estimated two trillion and five hundred billion dollars in market value and marking its worst trading day since 2025. The Dow Jones Industrial Average fell 3.4 per cent, erasing Wednesday's gains, while the S&P 500 dropped 4.4 per cent.
The sell-off was triggered by Democratic victories in both the House of Representatives and the Senate during Tuesday's midterms. Democrats campaigned on slowing the rapid expansion of AI technology and limiting the construction of crucial data centers due to environmental and community concerns. Senator Bernie Sanders posted on X calling for a national moratorium on data center construction to curb environmental damage and job losses.
The market shock quickly spread across Asian markets on Friday (6 November). Japan's Nikkei 225 tumbled up to 6 per cent, with Kioxia shares dropping over 12.6 per cent and Tokyo Electron falling 9.5 per cent. In South Korea, SK Hynix shares plunged more than 11.5 per cent and Samsung fell nearly 10 per cent, triggering circuit breakers on the Seoul exchange to halt panic selling.
Major US tech firms—including the "Magnificent Seven"—collectively lost over one trillion dollars in a single trading session. AI chipmaker Nvidia saw its share price drop over 9 per cent, wiping more than four hundred billion dollars from its market value. AMD and Micron shares tumbled over 17 per cent, Intel dropped 10.3 per cent, and SanDisk plunged more than 22 per cent. The Philadelphia Semiconductor Index tumbled over 12 per cent.
Elon Musk's companies also suffered heavy losses, with SpaceX shares down 8 per cent and Tesla falling nearly 11 per cent, erasing over three hundred billion dollars combined. Musk had spent approximately four hundred and fifty million dollars supporting Republican campaigns.
President Donald Trump blamed political opponents for the crash, writing on social media that the market experienced one of its worst days due to election results, while assuring investors that the economy would recover strongly.
Meanwhile, wealth management strategist Susanna Streeter noted that the rout underscores growing investor anxiety over whether massive capital investments in AI infrastructure will yield expected returns. Tech leaders, including OpenAI President Greg Brockman and Meta President Dina Powell McCormick, acknowledged that the industry must engage more effectively with local communities regarding data center infrastructure.
-SA
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Editor : Iqbal Sobhan Chowdhury
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Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Advertisement: 41053012; 01793317829, 01550707291, 01550707296
E-mail: [email protected], [email protected]. [email protected], [email protected], [email protected], [email protected], Online-email: [email protected]
