{"id":28583,"date":"2026-11-07T00:57:54","date_gmt":"2026-11-07T00:57:54","guid":{"rendered":"https:\/\/globalnewstoday.uk\/index.php\/2026\/11\/07\/investors-try-to-regain-their-footing-after-tech-stocks-tank-nbc-news\/"},"modified":"2026-11-07T00:57:54","modified_gmt":"2026-11-07T00:57:54","slug":"investors-try-to-regain-their-footing-after-tech-stocks-tank-nbc-news","status":"publish","type":"post","link":"https:\/\/globalnewstoday.uk\/index.php\/2026\/11\/07\/investors-try-to-regain-their-footing-after-tech-stocks-tank-nbc-news\/","title":{"rendered":"Investors try to regain their footing after tech stocks tank – NBC News"},"content":{"rendered":"

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Tech stocks in the U.S. steadied Friday after suffering one of their worst routs in years, as investors weighed the prospect of an AI investment slowdown resulting from Democratic midterm victories against the sector\u2019s long-term growth potential.
The tech-focused Nasdaq 100 closed up 1.1% after plunging 6.3% on Thursday, its worst single-day performance since the Covid-19 pandemic.
The broader S&P 500 finished 0.3% higher, after tanking 4.4% Thursday, a drop that wiped out $2.8 trillion worth of wealth on paper.
A strong October jobs report Friday morning increased the odds that<\/a> the Federal Reserve will raise interest rates at its next policy meeting in December. The prospect of higher borrowing costs helped to push stocks down from their highs earlier in the day.
Investors continue to digest the results of Tuesday\u2019s midterm elections, in which a crop of Democratic candidates were elected to office who had pledged to rein in AI and data centers<\/a>. They include Gov.-elect Gina Hinojosa of Texas, a state that is among the largest data center markets in the country.
The AI boom is responsible for an ever-increasing share of U.S. stock market gains and economic growth, so any threat to the narrative of demand-fueled growth can rattle investors.
\u201cMarkets are being punished according to their dependence on the U.S. AI infrastructure cycle,\u201d Charu Chanana, chief investment strategist at Singapore-based SAXO Markets, told NBC News.
The incoming Democratic-controlled Congress could also tighten scrutiny of the AI industry, including its infrastructure projects, which could cause delays and additional costs.
This would add to existing worries investors already have about the long-term profitability of these investments.
Some analysts viewed Thursday\u2019s dramatic sell-off as overblown \u2014 merely a sign of some froth coming off an overstretched market \u2014 rather than the end of the line for the AI investment boom.<\/a>
Recent declines are \u201cjust speed bumps,\u201d said economist and investor Ed Yardeni.
Rather than spelling doom for the sector, Yardeni said losses like this week\u2019s could ultimately help keep the AI bubble from overheating.
Until it becomes clearer how much data center construction is truly threatened by newly elected lawmakers, volatility is likely to continue.
\u201cThis is a stock market that is trying to figure out the right valuations for the AI trade, which is grappling with a swift sentiment shift after the midterm elections,\u201d said Alex Guiliano, chief investment officer at New Jersey-based Resonate Wealth Partners.
Friday kicked off with steep losses in Asia. Japan\u2019s Nikkei suffered its worst week since 2020, falling as much as 6% and more than 20% since its most recent high, putting it in bear-market territory. South Korea\u2019s Kospi index tumbled more than 8%, triggering a temporary market-wide trading halt. There, AI data center memory suppliers Samsung and SK Hynix plunged more than 10% in the early hours, before recovering some of their losses.
In Taiwan, home to some of the most critical AI companies, including chip supplier TSMC, the benchmark TAIEX index dropped 9%.
The companies in Taiwan, South Korea and Japan are linked to the global AI spending cycle and \u201chence I am not surprised to see the magnitude of correction today following the sharp correction in the U.S.,\u201d Tai Hui, J.P. Morgan\u2019s APAC chief market strategist, told NBC News in emailed comments.
The months leading up to the American elections had already been a rollercoaster for Asian investors, who saw their fortunes soar in June during the AI stock boom, but have been suffering from a brutal recent sell-off.
A sense that valuations of key AI companies were inflated was troublesome enough for markets in Asia, but the Democratic sweep has introduced another layer of uncertainty.
Markets had largely expected losses for Trump\u2019s Republicans, but not on this scale.
\u201cThis matters enormously for Asia because much of the hardware supporting America\u2019s AI ambitions is manufactured here,\u201d Chanana, from SAXO Markets, said.
In China, both the tech-focused Star 50 and the AI Index slumped as much as 5% before recouping some losses.
\u201cThere is a legitimate argument that parts of China\u2019s AI equity bubble have already burst,\u201d Chanana said.
But she added that unlike the U.S., where much of the investment is commercially driven, \u201cChina treats AI and semiconductor self-sufficiency as strategic national priorities.\u201d
\u201cThis means investment can continue for reasons beyond immediate profitability, including technological independence, industrial competitiveness and national security.\u201d
That is not the case in South Korea, whose market darlings, memory makers SK Hynix and Samsung, are an integral part of the commercial AI buildout. That makes the country particularly sensitive to any U.S. slowdowns.
South Korea\u2019s benchmark Kospi index more than doubled in market value in June, but by Friday had shed most of the gains made this year. Like South Korea, there is acute exposure for Taiwan \u2014 key for advanced chip manufacturing and TSMC\u2019s headquarters.
Nevertheless, most of the Asian indexes are still higher than they were a year ago: South Korea\u2019s Kospi is up 25%, Japan\u2019s Nikkei 225 is up 13%, and TSEC Taiwan Technology is also up by 47%.
\u201cFor semiconductor and memory makers in Asia Pacific, as long as global demand for computing power continues to grow, demand for the underlying hardware should remain healthy over the medium term,\u201d J.P. Morgan\u2019s Hui said.
\u201cThere may be constraints on where the \u2018gold\u2019 can be mined, but as long as demand for the gold remains, the picks and shovels will still be needed elsewhere,\u201d he added.
Mithil Aggarwal is a Hong Kong-based reporter\/producer for NBC News.
Rob Wile is a Pulitzer Prize-winning journalist covering breaking business stories for NBCNews.com.
© 2026 NBCUniversal Media, LLC<\/p>\n

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For YouSettings news AlertsThere are no new alerts at this timeTech stocks in the U.S. steadied Friday after suffering one of their worst routs in years, as investors weighed the prospect of an AI investment slowdown resulting from Democratic midterm victories against the sector\u2019s long-term growth potential.The tech-focused Nasdaq 100 closed up 1.1% after plunging […]<\/p>\n","protected":false},"author":1,"featured_media":28584,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-28583","post","type-post","status-publish","format-standard","has-post-thumbnail","category-world"],"_links":{"self":[{"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/posts\/28583","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/comments?post=28583"}],"version-history":[{"count":0,"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/posts\/28583\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/media\/28584"}],"wp:attachment":[{"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/media?parent=28583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/categories?post=28583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalnewstoday.uk\/index.php\/wp-json\/wp\/v2\/tags?post=28583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}