US stocks recorded heavy losses on November 5 as investors assessed concerns about future artificial intelligence infrastructure spending following Democratic victories in the midterm elections.
The Nasdaq Composite declined 5.5%, while the S&P 500 fell 4.4%. The Philadelphia Semiconductor Index dropped 12.2%, reflecting selling pressure across semiconductor companies. The Nasdaq also entered correction territory after falling more than 10% from its previous peak.
Investors raised concerns that changes in congressional leadership could bring tighter rules for AI infrastructure development. However, these concerns reflected expectations about future policies rather than confirmed regulatory changes.
The selling extended into South Korea on Friday, where the KOSPI dropped more than 8% shortly after trading opened. The decline triggered a 20-minute trading halt before the index recovered some losses to close 6.02% lower at 5,059.69.
Meanwhile, South Korean authorities announced temporary relief from margin-loan collateral requirements to reduce forced selling. The three-month measure is scheduled to begin Monday.
