Major equity indices dropped sharply as Wall Street absorbed steep declines led by the Philadelphia Semiconductor Index's 11 percent plunge. Investor confidence deteriorated following weak chip sales figures and election outcomes that could restrict the expansion of artificial intelligence facilities. Outside of equities, energy markets climbed with Brent crude advancing 2.58 percent to $97 a barrel amid Middle East war uncertainties. Meanwhile, safe-haven demand pushed gold above $4,100 an ounce as benchmark Treasury yields softened.
Key points
Political shifts in Congress alongside local election wins in Texas and Georgia are threa…: Political shifts in Congress alongside local election wins in Texas and Georgia are threatening the pace of data center development.
Systematic de-leveraging and short-selling by hedge funds in semiconductors and neoclouds…: Systematic de-leveraging and short-selling by hedge funds in semiconductors and neoclouds exacerbated the broad market retreat.
The Bank of England raised interest rates for the first time since 2023, keeping the Brit…: The Bank of England raised interest rates for the first time since 2023, keeping the British pound steady at $1.3466.
Sources checked by our analysis pipeline: 1
NEW YORK, Nov 5 : Global stocks fell on Thursday, weighed down by a sharp selloff in semiconductor shares after weak earnings from Qualcomm and concerns that a Democrat-controlled US Congress could slow investment in artificial intelligence infrastructure.
Wall Street's main indexes tumbled, with the Nasdaq on track to confirm a correction from its record closing high. Technology stocks led declines among S&P 500 sectors, while the Philadelphia Semiconductor Index slumped 11 per cent.
The Dow Jones Industrial Average fell 2.2 per cent, the S&P 500 slid 3.4 per cent, and the Nasdaq Composite dropped 5.2 per cent.
Qualcomm shares dived 11 per cent after the company's smartphone chip sales missed Wall Street estimates.
"Disappointing earnings and the Dem sweep potentially slowing the AI buildout are pressing sentiment," said Mark Hackett, chief market strategist at Nationwide. "This is a volatile and cyclical group, and when sentiment shifts, the reactions are intense."
Candidates in Tuesday's midterm elections who opposed data centre expansion and campaigned in part on moratoriums on new developments also secured victories in Texas and Georgia, adding to concerns…
Democratic midterm election victories triggered fresh political uncertainty around artificial intelligence infrastructure expansion, leaving the Nasdaq 100 facing more than $2 trillion in market-value losses. Heightened regulatory concerns compounded existing market anxieties regarding elevated interest rates and questionable returns on heavy capital spending. Consequently, the rout battered hardware manufacturers, specialized cloud providers, and utility operators tied to power-intensive server facilities.
Investors tracking the semiconductor sector are closely monitoring the current downward trajectory of the chipmaker's shares. A sustained retreat from recent highs threatens to push the valuation into bear market territory. Market participants must assess whether this decline represents an entry point or further exposure to risk.
Investors are facing renewed market turbulence as tech-driven momentum shows signs of faltering. A sharp spike in the primary volatility index reflects mounting unease across trading desks, driven primarily by setbacks in the artificial intelligence sector. This sudden repricing of risk marks a significant turning point after an extended period of relative calm.