Tech selloff goes global after Democratic midterm wins; Trump says 401(k)s dropped

A rout in technology stocks spread from Wall Street to Asia and Europe on Friday, after the Democratic midterm wins fed fears about the future of artificial intelligence, or AI ¹. The selloff matters to anyone with a 401(k) or an IRA, because stock funds often hold large amounts of these companies.

What happened on Thursday

On Thursday, the tech-heavy Nasdaq 100 fell 6.3%, erasing $2.3 trillion in market value ². The broader S&P 500 index fell 4.4%, wiping out $2.8 trillion ¹². The Dow Jones Industrial Average dropped 1,833 points, or 3.4% ².

Both the Nasdaq 100 and the S&P 500 had their worst day since April 2025 ². NBC News said the S&P 500 drop was its worst in 18 months, a stretch when President Donald Trump's global tariffs rocked markets ¹. Nvidia fell 9.2%, and the Philadelphia semiconductor index fell 12.3%, its worst day since March 2020 ².

Friday: losses spread overseas

South Korea's Kospi index tumbled more than 8% on Friday, which set off a temporary market-wide trading halt ¹². Samsung and SK Hynix, which make memory chips for AI data centers, plunged more than 10% early on ¹. Taiwan's main index dropped 9% ¹.

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Japan's Nikkei 225 fell as much as 6%, which put it in bear-market territory, and it had its worst week since 2020 ¹. London's FTSE 100 fell 1.6% at the open, and the French and German indexes took similar hits ¹. U.S. stock futures were mixed early Friday ¹.

Why investors are worried

NBC News tied the plunge to the election results, which will bring in a group of anti-AI and anti-data center politicians. They include Texas Gov.-elect Gina Hinojosa. Texas is the largest data center market in the country ¹.

A Democratic Congress could look harder at AI infrastructure projects. That could cause delays and extra costs, which adds to investor doubts about whether the huge spending will pay off ¹. Weak earnings from chipmakers Qualcomm and Arm also set off Thursday's selling ².

Markets are being punished according to their dependence on the U.S. AI infrastructure cycle,

Trump blamed the election. On Truth Social he wrote that the market had one of its worst days in history and added that 401(k)s had therefore dropped ². Analysts pointed to the AI industry itself. Ed Yardeni of Yardeni Research said he did not think the AI bubble was bursting, but that it was losing air "very, very rapidly." ²

What to watch next

The Nasdaq Composite tumbled into correction territory on Thursday, a decline of at least 10% ². Whether the slide continues depends on how Asian and European markets finish Friday and how Wall Street opens. The sources reviewed did not say whether Congress has scheduled any action on AI or data centers.

The analysis is simple. A sharp one-day drop is not a permanent loss unless you sell. But older savers who are close to retirement have less time to recover, so a swing this large is worth a look at how much of your account is in tech funds.

The Record

1. Nov 5, 2026The Nasdaq 100 fell 6.3% and the S&P 500 fell 4.4%, the worst day for both since April 2025 ².
2. Nov 6, 2026South Korea's Kospi tumbled more than 8% and triggered a temporary market-wide trading halt ¹².
3. Nov 6, 2026Japan's Nikkei fell as much as 6% and had its worst week since 2020 ¹.

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<h2>Tech selloff goes global after Democratic midterm wins; Trump says 401(k)s dropped</h2> <p><em>By The GOP Files Kitchen-Table Desk. This article first appeared on <a href="https://thegopfiles.com/story/tech-selloff-goes-global-after-democratic-midterm-wins-trump-says-401-k-s-dropped">The GOP Files</a> on Friday, November 6, 2026.</em></p> <p>A rout in technology stocks spread from Wall Street to Asia and Europe on Friday, after the Democratic midterm wins fed fears about the future of artificial intelligence, or AI . The selloff matters to anyone with a 401(k) or an IRA, because stock funds often hold large amounts of these companies.</p> <h2>What happened on Thursday</h2> <p>On Thursday, the tech-heavy Nasdaq 100 fell 6.3%, erasing $2.3 trillion in market value . The broader S&amp;P 500 index fell 4.4%, wiping out $2.8 trillion . The Dow Jones Industrial Average dropped 1,833 points, or 3.4% .</p> <p>Both the Nasdaq 100 and the S&amp;P 500 had their worst day since April 2025 . NBC News said the S&amp;P 500 drop was its worst in 18 months, a stretch when President Donald Trump&#39;s global tariffs rocked markets . Nvidia fell 9.2%, and the Philadelphia semiconductor index fell 12.3%, its worst day since March 2020 .</p> <h2>Friday: losses spread overseas</h2> <p>South Korea&#39;s Kospi index tumbled more than 8% on Friday, which set off a temporary market-wide trading halt . Samsung and SK Hynix, which make memory chips for AI data centers, plunged more than 10% early on . Taiwan&#39;s main index dropped 9% .</p> <p>Japan&#39;s Nikkei 225 fell as much as 6%, which put it in bear-market territory, and it had its worst week since 2020 . London&#39;s FTSE 100 fell 1.6% at the open, and the French and German indexes took similar hits . U.S. stock futures were mixed early Friday .</p> <h2>Why investors are worried</h2> <p>NBC News tied the plunge to the election results, which will bring in a group of anti-AI and anti-data center politicians. They include Texas Gov.-elect Gina Hinojosa. Texas is the largest data center market in the country .</p> <p>A Democratic Congress could look harder at AI infrastructure projects. That could cause delays and extra costs, which adds to investor doubts about whether the huge spending will pay off . Weak earnings from chipmakers Qualcomm and Arm also set off Thursday&#39;s selling .</p> <blockquote><p>Markets are being punished according to their dependence on the U.S. AI infrastructure cycle,</p><p>&mdash; Charu Chanana, Chief Investment Strategist, SAXO Markets</p></blockquote> <p>Trump blamed the election. On Truth Social he wrote that the market had one of its worst days in history and added that 401(k)s had therefore dropped . Analysts pointed to the AI industry itself. Ed Yardeni of Yardeni Research said he did not think the AI bubble was bursting, but that it was losing air &quot;very, very rapidly.&quot;</p> <h2>What to watch next</h2> <p>The Nasdaq Composite tumbled into correction territory on Thursday, a decline of at least 10% . Whether the slide continues depends on how Asian and European markets finish Friday and how Wall Street opens. The sources reviewed did not say whether Congress has scheduled any action on AI or data centers.</p> <p>The analysis is simple. A sharp one-day drop is not a permanent loss unless you sell. But older savers who are close to retirement have less time to recover, so a swing this large is worth a look at how much of your account is in tech funds.</p> <p><em>Read the original, with every source linked, at <a href="https://thegopfiles.com/story/tech-selloff-goes-global-after-democratic-midterm-wins-trump-says-401-k-s-dropped">thegopfiles.com</a>. Republished under The GOP Files' <a href="https://thegopfiles.com/republish">free republishing terms</a>.</em></p> <img src="https://thegopfiles.com/api/rp/tech-selloff-goes-global-after-democratic-midterm-wins-trump-says-401-k-s-dropped.gif" alt="" width="1" height="1" style="border:0;width:1px;height:1px">

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Sources

1. NBC News, “Global market rout deepens after midterms intensify AI fears” (2026-11-06). nbcnews.com/business/markets/global-markets-tech-stocks-ai-m
2. NBC News, “Stocks plunge as election outcome and AI worries crush tech shares” (2026-11-05). nbcnews.com/business/markets/tech-stocks-plunge-ai-midterms-
3. Investing.com, “South Korea's KOSPI halts trade after 8% wipeout on AI losses” (2026-11-05). investing.com/news/stock-market-news/south-koreas-kospi-halt

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