Tech firms suffer bloodbath as US midterms fuel AI fears

Asian tech stocks fell sharply on Friday after Wall Street’s slump, with investors citing renewed worries about potential Democratic regulation of the AI industry following this week’s US midterm election results. Selling hit Seoul and Tokyo early, as traders retreated amid uncertainty for a sector that had driven markets to record highs just five months earlier. The article links the selloff to broader US voter opposition to data centers, along with a call from progressive Senator Bernie Sanders for a national moratorium on their construction. Analysts also pointed to investor concerns about large AI-related spending and when returns might materialize, alongside rising borrowing costs. Market measures showed major losses: Nasdaq dropped 5.5%, S&P 500 fell more than 4%, and Dow fell over 3%. Regional damage extended across Asia, with chip and tech names retreating.