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

The Australian share market appears poised for a decline today, following a strong day yesterday. On Wall Street, a sharp sell-off in tech stocks on the New York Stock Exchange occurred, as investors pulled out amid concerns about potential regulation. The ASX 200 futures experienced a drop of 33 points, or 0.4%, while the Nasdaq suffered a nearly 4% decline.

A Reuters report indicated that the Nasdaq was on track to confirm a correction on November 5, setting the stage for its most significant drop since the April 2025 "Liberation Day" market crash.

The Nasdaq's downward trajectory was primarily driven by AI and data center stocks, including Nvidia and CoreWeave, which saw declines of 9% and 12%, respectively, in the mid-afternoon trading session. The sweeping Democratic victory in the US midterms, securing control of the House of Representatives, Senate, and numerous state-wide races, has raised concerns about potential obstacles to the rapid growth of artificial intelligence.

Of the 41 data center-related ballot measures voted on this week, all but one resulted in opposition to server farms, according to Ballotpedia.

The broader US market also suffered on the eve of the trading day, with the S&P 500 falling more than 4% to 7,378.23 points, while the tech-heavy Nasdaq led the decline, slipping 5.175% as of the latest update. The Dow Jones Industrial Average also experienced a 3.15% drop, settling at 51,674 points. The overseas market situation has been particularly dire, especially in the United States, prompting the need for a strong coffee to comprehend the gravity of the events unfolding.