New Delhi, Nov 7 (SocialNews.XYZ) US stocks suffered their biggest weekly decline since April 2025 as investor concerns over artificial intelligence-related investments heightened after the Democratic sweep in the US midterm elections due to possible policy shifts.
The election result triggered sharp losses for technology shares, and the S&P 500 fell 2.7 per cent for the week despite a 0.3 per cent gain on Friday.
Though the Nasdaq 100 rose 1.35 per cent in the final session of the week, it remained 4.91 per cent down for the week due to the steep selloff a day earlier marking the biggest one-day rout since the Covid pandemic. Markets initially rallied after the election results, with technology megacaps leading gains, but sentiment reversed sharply on Thursday.
Technology stocks plunged as worries mounted that opposition to data centres and possible regulatory changes could slow growth prospects for chipmakers and suppliers linked to the AI ecosystem, according to multiple reports.
Market volatility surged, with the CBOE Volatility Index posting its largest increase since April 2025 as investors sought protection against further declines.
The rout intensified after hedge funds and long-only managers started selling, along with quantitative firms trying to profit from market volatility.
The Thursday selloff erased roughly $3 trillion in market value from S&P 500 companies and the weakness spread quickly to Asia where technology-heavy markets recorded some of the region’s steepest losses in recent years.
South Korea’s KOSPI index fell more than 8 per cent which triggered a trading halt before recovering slightly after the market reopened. Similarly, another major index, Japan’s Nikkei, dropped around 6 per cent while Taiwan’s benchmark index also declined by over 8 per cent.
In terms of particular stocks, major semiconductor and AI-linked companies led the losses as Samsung Electronics declined nearly 10 per cent and SK Hynix slid almost 12 per cent.
—IANS
aar/na
Source: IANS
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