Is Trump about to be defeated? Diving U.S. stock futures drag down Taiwan stocks to nearly 800 points

Trump may be defeated in the midterm elections, and Taiwan stocks followed Nasdaq futures in early trading. (File photo)

[Reporter Zhuo Yijun/Reporting from Taipei] The results of the U.S. midterm election are about to be released. As the counting continues, the Republican Party of U.S. President Trump is likely to suffer a disastrous defeat. Nasdaq futures suddenly plunged more than 1.86%, and Asian stocks The color of pigs and sheep has changed, and the Taiwan stock market has turned from red to black, fluctuating nearly 800 points up and down. According to legal analysis, if Trump is defeated, the market may be worried about increased supervision of artificial intelligence (AI) in the short term, putting technology and AI-related stocks under pressure.

Rong Yishen, Vice President of Inspiration Investment Consulting, analyzed that the U.S. midterm elections are starting to open one after another. We can observe whether there is a transfer of control of the House and Senate during the session, as well as the immediate reaction of U.S. stock futures, the U.S. dollar, and U.S. bond yields to the voting results. If the Democratic Party wins the House of Representatives, it will lead to policy negotiation and congressional supervision. With the increase, the market will re-evaluate the speed of fiscal and policy implementation, and there may be another 1-2 weeks of shock. Foreign investors have sold more than 1.2 trillion Taiwan stocks in October. Equity stocks have been close to the annual level after being sold by foreign investors. After the U.S. midterm elections, funds should be able to flow back into technology stocks.