Business · Markets · 1 hr ago
US chip stocks slump after Democrats win control of Congress
Democrats’ midterm win sent chip stocks sharply lower as investors weighed what their control of Congress could mean for technology.
The change is due to take effect on January 3, when Democrats begin leading Congress.
Some Democrats have called for pausing AI development, regulating it and banning superintelligent AI.
The Nasdaq 100 fell 6.36% on Thursday, while the chip index dropped 12.15%, its biggest fall since March 2020.
The chip sell-off weighed on the wider US market, with the S&P 500 down 4.36%.
European bank indexes rose about 4.5% in the middle of the week, and the writer says late-October lows are key levels to watch.
Those lows will help show whether European banks’ broader uptrend remains intact.
US chip stocks fell sharply after Democrats won control of Congress in the midterm elections.
The Philadelphia Semiconductor Index fell 12.15% on Thursday, while the Nasdaq 100 dropped 6.36%.
The article linked pressure on technology shares to Democrats’ stated interest in pausing and regulating artificial intelligence.
Democrats are due to take control of Congress on January 3.
European and US bank shares rose after markets responded to the Democratic victory.
- Who
- US chip companies and technology stocks were hit by the sell-off after Democrats won control of Congress.
- What
- The Philadelphia Semiconductor Index fell 12.15% on Thursday. The Nasdaq 100 fell 6.36%.
- When
- The declines followed the midterm elections; the article was published November 6, 2026. Democrats are due to take control of Congress on January 3.
- Where
- The sell-off was in US markets. European and US bank shares also moved after the election result.
- Why
- The article cited concerns about Democratic proposals to pause and regulate AI, alongside heavy selling in technology stocks.
This story does not have two clearly opposing sides.
European bank indices rose about 4.5%, while the US energy sector ETF fell 4.74%.
The Nasdaq 100 fell 6.36% and the Philadelphia Semiconductor Index dropped 12.15%.
Democrats are due to begin directing Congress.
- Philadelphia Semiconductor Index
- Fell 12.15% on Thursday
- Nasdaq 100
- Fell 6.36% on Thursday
- Technology share of S&P 500
- About 40%
- European bank indices
- Rose about 4.5% midweek
- Democratic control of Congress
- Due to begin January 3