Why Did Global Markets Plunge After the US Midterm Elections?

Global equities sold off sharply on November 5 as investors reassessed AI investment, semiconductor demand and data-center expansion, with the S&P 500 falling 4.4%, the Nasdaq Composite dropping 5.5% and the Dow Jones losing more than 1,800 points. The decline spread to Asia, where South Korea’s KOSPI plunged sharply. The move matters because it signals a broad repricing of the AI and chip trade that has driven major indexes, and it puts pressure on risk assets more widely. What to watch next is whether semiconductor and data-center spending guidance holds up, and whether the sell-off deepens across Asian markets.