Analysts and investors react to AI market rout
SPY•SPY•SPY•SPY•The Nasdaq fell 5.5% on Thursday, its biggest drop since the 2025 tariff-triggered selloff. On Friday, trading in Seoul was halted after stocks plunged 8%, while Tokyo’s Nikkei fell more than 6%.
Stock markets tumbled as investors worried that a Democratic sweep in the midterm elections could bring regulation and slow the AI boom. The Nasdaq fell 5.5% on Thursday. In Asia on Friday, Seoul trading was halted after stocks plunged 8%, and Tokyo’s Nikkei fell more than 6%.
Market participants said concerns about high valuations, free cash flow and the pace of data-centre construction had weighed on technology and AI-related stocks. Some said election uncertainty could accelerate those pressures, while others cautioned that the result did not necessarily mean an end to the AI boom. One investor said it was too early to tell whether markets had bottomed.
