Global Stocks Fall as AI Selloff Spreads After US Midterm Results

Asian stocks fell sharply on November 6, 2026, extending a global retreat from artificial intelligence investments after heavy US losses. Investors faced concerns about chip earnings, infrastructure financing and possible restrictions on data center expansion following Democratic victories in the November 3 midterms.

South Korea’s Kospi dropped more than 8%, triggering a 20 minute trading halt before recovering some ground, according to Reuters reporting published by Metrobank . Japan’s Nikkei fell approximately 6%, while Taiwan’s market declined more than 8% in early trading. Those figures were trading snapshots, not confirmed closing results.

The Asian declines followed a November 5 Wall Street reversal. According to The Associated Press , the S&P 500 closed down 4.4% at 7,353.73, the Nasdaq Composite lost 5.5% to 24,315.00, and the Dow fell 3.4% to 51,523.06.

Chip Stocks Lead the Decline

Reuters reported that the Philadelphia Semiconductor Index plunged 12.2% on November 5. AMD dropped 17.3%, Qualcomm lost 9.5% and Nvidia fell 9.3%, underscoring the pressure on companies supplying the AI infrastructure expansion.

The latest selling followed earlier earnings concerns. Intel fell 28.6% on October 30 after weak guidance, according to Kiplinger. Reuters also identified disappointing Qualcomm smartphone chip sales as a separate trigger for the latest decline.

Election Concerns Add to Existing Pressures

Reuters reporting linked the election reaction particularly to potential state restrictions on data center construction, rather than Democratic control of Congress alone. Investors feared that slower development could delay demand for chips and computing infrastructure.

The initial response was mixed. On November 4, the S&P 500 gained 1.6%, while the semiconductor index fell 3.1%, according to Reuters. The Nasdaq 100 had already entered correction territory on November 2, before election results.

That sequence limits claims that the vote alone caused the rout. Earnings disappointments and doubts about the financing and returns behind AI spending were already weighing on investors.

The policy question remains unresolved: proposed construction restrictions are not evidence that a nationwide data center ban has taken effect. Whether those proposals become enforceable rules remains a central uncertainty for affected businesses.