Wall Street loses $2 trillion after Democrats' victory in the US midterm elections

Wall Street was hit Thursday by one of the most severe trading sessions in recent years, following the Democrats' victory in the US midterm elections held on November 3. Investors fear that the new political configuration in Washington will bring restrictions on the artificial intelligence industry and slow the development of data centers.

The Nasdaq index, dominated by technology companies, fell 5.52%, entering correction territory. The S&P 500 lost 4.36%, while the Dow Jones fell 3.4%. Technology companies collectively lost approximately $2 trillion in market value.

Chipmakers were among the hardest hit. Nvidia shares fell by around 9.3%, AMD by more than 17%, while the Philadelphia Semiconductor Index lost more than 11% during the session. The sell-off spread to Tesla, SpaceX and Bitcoin.

The effects were also felt in Asia, where shares of Samsung, SK Hynix, Tokyo Electron and Kioxia posted sharp declines. Donald Trump blamed the decline on the Democratic Party, while investors are also assessing the risk that massive investments in artificial intelligence may fail to generate the expected revenues.