US stocks fell sharply on November 5, wiping about $2.5 trillion — roughly ¥395 trillion — off market value, on concern that Democrats' strong showing in the midterm elections could put the brakes on AI infrastructure buildout. Stock markets around the world fell heavily in response.
The Dow Jones Industrial Average dropped more than 1,800 points at one stage as selling over the outlook for AI widened, the Mainichi Shimbun reported. The Nasdaq Composite was on course to be confirmed as having entered a correction, according to Reuters.
Tokyo follows New York down
In Japan, the Nikkei Stock Average briefly fell below 60,000 for the first time in about six months and was down more than 4,000 points at one point, NTV NEWS NNN reported. Taiwan's market fell as much as 9% at one stage, its largest drop.
The midterm results put the Democrats in a position to slow the buildout of AI infrastructure in the United States, and investors sold high-tech shares on that prospect. The losses in New York fed straight into Asian trading, with semiconductor and other technology names leading the declines.