Stocks Slide After Democratic Victories Raise Tech Scrutiny Fears

Markets reversed sharply after Democratic victories in the midterm elections, with U.S. stocks sliding as investors weighed the prospect of tighter scrutiny of technology and AI companies and limits on President Donald Trump’s agenda. The Nasdaq fell particularly hard, while the Dow and S&P 500 also declined; weakness in chipmakers and data-center suppliers added to pressure, alongside disappointing results from some companies. The dollar weakened and Treasury yields fell as investors anticipated that political gridlock could curb tax cuts and spending, while Asian equities also dropped. Trump Media shares fell amid concerns that the election could weaken the political support behind the company’s investment appeal, compounded by its poor financial results. The market moves reflected a reassessment of policy-sensitive assets as investors monitored election results and broader economic signals.