WS #16952
A Democratic sweep in the US midterms has triggered a broad-based liquidation of technology stocks, with the Nasdaq plunging into correction territory and wiping over $2.3 trillion in market value. The selloff is led by Magnificent 7 names, particularly Tesla (-8.9%) and Nvidia (-6.5%), as investors reassess the regulatory and political risks facing hyperscalers. This marks a decisive shift from the previous 'AI rally' narrative to a risk-off environment, with capital rotating out of high-multiple growth stocks into small caps and defensive sectors.
Tech Selloff & AI Thesis Unravelling
A Democratic sweep in the US midterms has triggered a broad-based liquidation of technology stocks, with the Nasdaq plunging into correction territory and wiping over $2.3 trillion in market value. The selloff is led by Magnificent 7 names, particularly Tesla (-8.9%) and Nvidia (-6.5%), as investors reassess the regulatory and political risks facing hyperscalers. This marks a decisive shift from the previous 'AI rally' narrative to a risk-off environment, with capital rotating out of high-multiple growth stocks into small caps and defensive sectors.