Wall Street indices drop as AI regulation concerns spark sell-off
Wall Street faced a sharp sell-off after the Democratic victory in the midterm elections sparked growing concerns over potential tightening of regulation in AI infrastructure development, with the Nasdaq index dropping more than 5 percent, according to zpravy.kurzy.cz. The sharp downturn abruptly ended a brief period of post-election optimism, dragging down the American stock market as investors reassessed the regulatory rules.
Indices Plunge Across the Board
The main S&P 500 index weakened by roughly 4 percent, while the Dow Jones fell by nearly 3 percent. Meanwhile, byznys.hn.cz reported that the S&P 500 lost 4.3 percent and the Nasdaq Composite tumbled 5.52 percent, marking its largest single-day decline since the spring of the previous year. MarketWatch noted that investor panic reached levels not seen since April, when President Donald Trump initiated tariff wars, as detailed by byznys.hn.cz.
📈 Akciový trh Wall Street čelí prudkému výprodeji, který se rozšířil téměř po celém americkém akciovém trhu. Po krátkém období optimismu kolem polovič… https://t.co/lPr1pRrFun
New estimates project that upcoming restrictions could delay approximately 30 percent of data center projects planned for 2028. Regulatory risks weighed heavily on semiconductor manufacturers such as Nvidia, AMD, and Micron, alongside data center operators including CoreWeave and Nebius. Qualcomm added further pressure to the technology sector after reporting that its smartphone chip revenue dropped 26 percent to 5.14 billion USD amid a broader slowdown in the smartphone market and rising component costs.
European Markets Remain Calm
European exchanges experienced a significantly quieter trading session than their American counterparts. The British FTSE 100 and German DAX both edged down by roughly 0.4 percent. Conversely, the French CAC 40 gained 0.3 percent and the Spanish IBEX 35 rose by 0.4 percent.
Macroeconomic Data Shows Persistent Inflation and Resilient Labor
Across the Atlantic, the American labor market maintained notable resilience. Initial jobless claims fell to 189,000 for the week ending October 31, dropping from 195,000 the previous week and beating economist projections of a rise to 197,000. The data points to low layoff levels, though corporations maintain a cautious stance on expanding headcounts.
Russia Warns Citizens Against Travel as Bitcoin Plunges
Amid ongoing negotiations between the United States and Tehran, Russia advised its citizens to avoid traveling to Iran, pointing to potential concerns over a wider escalation in the Middle East. Financial market risk aversion spilled directly into digital assets. Bitcoin dropped more than 5.5 percent to test the 76,000 USD threshold, while Ethereum plummeted nearly 8 percent toward 2,250 USD.