November 6, 2026
Shares of technology companies witnessed a sharp decline today, Thursday, as investors assessed the repercussions of the results of the US midterm elections on the artificial intelligence sector, amid growing fears of tightening regulatory restrictions.
The information technology sector led the wave of losses, recording a decline of 3.90%, while the Nasdaq 100 index fell by 5.77%, losing about $1.9 trillion of its market value. The declines included all 11 sectors included in the S&P 500 index.
At the level of major companies, “Nvidia” shares fell by 7%, erasing all of its gains achieved since the beginning of the year, while shares of “Tesla” and “SpaceX”, owned by Elon Musk, fell by 11% and 9%, respectively.
In the same context, ICE Data Services data showed that SpaceX’s five-year credit default swap contracts increased by 14.6 basis points, reaching 284.3 basis points annually.
The intense selling wave comes amid fears that Democratic control of Congress will result in tightening restrictions imposed on data centers in the United States, which may negatively impact the volume of demand for semiconductors.
The repercussions of the decline extended to European markets, as the Stoxx 600 index closed down by 0.38% at 654.87 points, abandoning the record levels it recorded during the session.
Shares of electronic chip companies topped the list of losses in Europe, as “Switech” shares fell by 16.7%, and “Infineon” shares fell by 8.5%, while shares of “Extron”, “ASML” and “Celtronic” companies fell by 9.8%, 6.6% and 12.3%, respectively.
