NY stock plummets, down more than $1,800; AI sells due to concerns about tightening regulations; NASDAQ market capitalization disappears by 390 trillion yen

[New York Current Affairs] The New York stock market fell sharply on the 5th due to concerns about stricter regulations on development related to artificial intelligence (AI) following the results of the US midterm elections. The Dow Jones Industrial Average, which is made up of blue-chip stocks, closed at $51,523.06, down $1,833.06 (3.4%) from the previous day's closing price. This was the largest decline since April 4, 2025, when the U.S. Trump administration announced reciprocal tariffs on various countries.

NY stocks soar, over $1,500 higher due to end of midterm elections and low oil prices

The NASDAQ Composite Index, which focuses on high-tech stocks, fell 1,421.51 points (5.5%) to close at 24,315.00. It was the lowest price since April 2026, and according to US media, the market capitalization of the stocks that make up the index decreased by $2.5 trillion (approximately 390 trillion yen), the largest single-day decrease ever.

Almost all industries fell from the beginning of the day. All 30 stocks that make up the Dow were negative, with stocks related to semiconductors, software, and AI selling particularly hard. In the midterm elections, Democrats regained control of the House and Senate and won gubernatorial races in states with many plans for data center development. Concerns about stagnation in AI-related infrastructure development were a selling factor.

However, a Japanese securities source points out that ``AI demand itself has not disappeared.Although the timing will be delayed, AI-related capital investment will proceed.''