[International Finance Briefing] Nasdaq Plunges 5.5% on Data Center Regulation Concerns... Bank of England Raises Interest Rate to 4.00%

U.S. equities sold off sharply after Democrats swept the midterm elections, with Nasdaq falling 5.5% to 24,315 — more than 10% below its prior peak, signaling a correction — while the S&P 500 posted its largest drop since April 2025 and the Philadelphia Semiconductor Index plunged about 12% as selling concentrated in AI-linked tech names. The move reflected fears that expanded data-center construction rules could hit chip and AI infrastructure demand, pushing investors toward Treasuries and other safe havens. The Bank of England raised its policy rate to 4.00%, adding to global tightening concerns as Federal Reserve officials stressed the need for further hikes. The scale of the semiconductor decline makes data-center regulation the key variable for AI-related earnings and capex outlooks.