The elections hit artificial intelligence. Shares of giant technology companies crashed

The Democrats' victory in the midterm elections in the United States brought about concerns that legal controls on the artificial intelligence sector would be increased, leading to severe declines in global technology stocks.

The sales wave that started in the New York Stock Exchange moved to Asian markets on the last trading day of the week, and sharp losses in value were seen in the shares of technology companies.

While South Korean and Japanese stock markets were at the center of the sales, uncertainty in the technology sector, which reached record levels only five months ago, accelerated the exit of investors from risky assets.

The victory of the Democrats in Tuesday's midterm elections was initially welcomed by the markets with the expectation that it would put pressure on US President Donald Trump to end the war with Iran.

Following the election results, concerns about the fate of investments in artificial intelligence infrastructure quickly became the main agenda item of the markets.

While US voters from different parts of the political spectrum appear to be widely opposed to data centers, many politicians who won the midterm elections have vowed to slow down these projects.

Market analysts stated that progressive US Senator Bernie Sanders' call for a nationwide moratorium on the construction of data centers also increased investor anxiety.

Concerns about when the hundreds of billions of dollars of resources transferred by companies to the artificial intelligence sector will be returned and the recent increase in borrowing costs have increased the question marks about the financial situation of companies along with the election results.

The discomfort created in the markets by the extraordinary increases in the valuations of many technology companies was also among the factors that supported the selling trend.

MCH Market Insights analyst Michael Hewson noted the following regarding the reason for investors selling:

"Investors are selling on concerns that opposition to artificial intelligence infrastructure plans may increase. Election results in Texas have also triggered concerns that politicians in the state may target Elon Musk's Tesla and SpaceX companies due to his support for Trump."

The technology-heavy Nasdaq index on the New York Stock Exchange fell 5.5 percent, having its worst day on a percentage basis since April last year, when Trump announced comprehensive global tariffs.

In the decline in New York, the S&P 500 index lost more than 4 percent and the Dow Jones index lost more than 3 percent.

According to Bloomberg data, the Philadelphia Semiconductor Index fell nearly 16 percent this week, heading for its worst performance since April of last year.

US President Donald Trump blamed the Democrats for the collapse in the markets.

In his post on the Truth Social platform, Trump said, "The stock market crashed today because the Fool-ocrats had a great success on Tuesday. It's very sad to see this, you can only blame yourself! President DONALD J. TRUMP."