Live: ASX looks set to fall as US tech stocks plunge on predictions of AI pullback

On November 5, 2026, US stock markets plunged sharply following the previous day’s midterm election results. The Dow Jones Industrial Average fell by about 1,200 points, reversing most gains from a prior surge of over 1,500 points. The tech-heavy Nasdaq Composite index dropped by up to 5%, marking its worst performance in 18 months, amid growing fears that the AI industry will face increased regulation under new Democratic control. Shares in companies like SpaceX and semiconductor firms Intel and Nvidia also declined significantly; Intel's shares fell more than 18% over five days while Nvidia saw a drop of over 10%. This sell-off was exacerbated by midterm election outcomes where tech-critical candidates won key states with significant planned data center capacity, potentially impacting the AI buildout in those areas.