PiCK
Summary
- After Democrats won in a landslide in the U.S. midterm elections, global stock market capitalization fell by about $3.5 trillion in a single day.
- Selling was concentrated in U.S. technology shares, cutting Nasdaq market capitalization by about $2.5 trillion and sending major indexes sharply lower.
- Concerns over tighter regulation of the artificial intelligence (AI) and data-center industry after the Democratic victory hurt investor sentiment, though U.S. stocks later rebounded as bargain buying emerged.
Forecast Trend Report by Period
A Democratic landslide in the U.S. midterm elections wiped about $3.5 trillion from global stock market value in a single day.
The market capitalization of listed shares worldwide stood at $154 trillion as of Nov. 5, down $3.5 trillion from the previous day, the Nikkei newspaper reported on Nov. 7, citing data from financial information firms QUICK and FactSet.
Selling was concentrated in U.S. technology stocks. The market value of Nasdaq-listed companies shrank by about $2.5 trillion in a single day, marking the biggest one-day decline on record. The Dow Jones Industrial Average fell 3.44%, the S&P 500 dropped 4.36%, and the Nasdaq Composite slid 5.52%.
Markets attributed the weaker sentiment to concerns that a Democratic midterm victory could lead to tighter regulation of the artificial intelligence and data-center industries.
The shock from the U.S. spread to Asian markets as well. Market capitalization on the Tokyo Stock Exchange's Prime Market fell by about 77 trillion yen on Nov. 6. Taiwan's Taiex plunged as much as 8.99% intraday, while South Korean chip stocks including Samsung Electronics and SK Hynix also weakened.
U.S. stocks rebounded on Nov. 6 as bargain buying emerged.
Uk Jin
