Stocks plunge over AI restriction fears as Democrats win control of Congress

On November 5, 2026, stock futures and major indices in the US market dropped sharply following Democrats' unexpected victories in midterm elections, leading to fears of stricter AI regulation. The Dow Jones Industrial Average plunged by 1,200 points, while the tech-heavy Nasdaq Composite fell by up to 5% on concerns that an incoming Democratic Congress would impose new regulations on the artificial intelligence industry. This selloff erased over $2 trillion in market value from tech stocks within two days of the election results being announced. Major companies such as Nvidia, Intel, and SpaceX saw significant declines, with some investors caught off guard by the political shift.