Nasdaq-100 falls 4.5% after US midterms raise AI regulation fears

Business Nov 05, 2026

The Nasdaq-100 just slid 4.5%, with investors spooked by talk of tougher AI rules after the US midterm elections.

With Democrats now leading Congress, there is fresh worry about more oversight for big tech, so many are pulling their money out fast.

Semiconductor stocks drop 8.5%

Semiconductor stocks took an even bigger hit, dropping 8.5%. Big names like NVIDIA, Qualcomm, and Arm all saw sharp losses.

While sectors like healthcare and consumer staples managed some gains, most of the spotlight stayed on tech's rough day.

Analysts say this uncertainty could keep markets jumpy for a while as everyone waits to see what new regulations might look like.