Tech stocks battered as AI panic roils global markets

In response to Democratic gains in the US midterm elections, global markets experienced a significant downturn, with tech stocks at the forefront of the decline. Bursa Malaysia's Technology Index plummeted as much as 6.4%, marking its worst day in 18 months. The Nasdaq's 5.5% plunge, amounting to US$2.5 trillion in losses, and the Dow Jones' 3.4% slide, totaling 1,833 points, underscored the severity of the market turmoil.

Wall Street's "fear gauge" surged, reflecting investor concerns over potential increased regulatory oversight of AI projects under a Democratic-led US Congress. Although some analysts suggest that the tech market's decline may be more sentiment-driven than a fundamental issue, the uncertainty surrounding AI infrastructure development and deployment timelines remains a key source of risk for the sector.