US midterm elections spark fears of AI and data center cooldown, triggering global market rout

Driven by market concerns over tighter tech regulation and potential curbs on data center permits following the US midterm elections, global financial markets were hit by a tech sell-off that wiped out over $3.2 trillion in US market capitalization in a single day. The Nasdaq tumbled 5.5%, the Nikkei dropped nearly 6%, and semiconductors led the downturn, with Micron and AMD plunging as much as 17%. Analysts noted signs of slowing AI capex in tech giants' earnings, with policy uncertainty further compounding the pullback in stretched valuations.