Friday 6 November 2026Fears of tighter AI and data-centre regulation triggered the steepest fall for US technology shares in more than a year.
Featured image: Photo by Mike Peel (CC BY-SA 4.0), via Wikimedia Commons. Illustrative image of the New York Stock Exchange on Wall Street.
Key facts
- The Nasdaq Composite fell 5.5 per cent on Thursday in the US, its largest one-day drop since April 2025.
- The S&P 500 fell 4.4 per cent and the Dow Jones fell 3.4 per cent.
- South Korea’s Kospi triggered a 20-minute circuit breaker, and Samsung, SK Hynix and TSMC fell sharply.
- The ASX 200 closed down 0.5 per cent at 9020, with materials down 3 per cent.
- The Nasdaq is nearly 12 per cent below its record close on 6 October.
The sell-off
Technology shares were sold heavily on Wall Street on Thursday, US time. The Nasdaq Composite fell 5.5 per cent, its deepest one-day fall since April 2025, the S&P 500 fell 4.4 per cent and the Dow Jones Industrial Average fell 3.4 per cent, according to the ABC’s live coverage. The Nasdaq is now in correction territory, nearly 12 per cent below its record close of 6 October. The VIX volatility index rose to about 28, a level the ABC described as indicating a very nervous market.
Analysts linked the move to the Democratic midterm election result and to concern over tighter regulation of artificial intelligence and data-centre construction. Moomoo’s Tapas Strickland said the market was pricing in construction moratoriums and heavy regulation, and the ABC reported that the Texas governor and a senator had indicated they might halt or pause AI data-centre development.
Asia and Australia
Selling spread to Asia on Friday. South Korea’s Kospi fell more than 8 per cent in early trade, triggering a 20-minute circuit breaker, with Samsung down nearly 10 per cent, SK Hynix down 11.7 per cent, Kioxia down 14 per cent and TSMC down 8.5 per cent. Japan’s Nikkei also fell sharply.
The ASX 200 closed down 0.5 per cent at 9020. Materials fell 3 per cent and technology fell 1.4 per cent.
What it means for investors
The ABC noted that Australians’ superannuation holds about $4.5 trillion in markets, with roughly 20 per cent exposed to Wall Street. Floodlines’ Anna Wu described the fall as a sentiment shock rather than a change in fundamentals, because the US President retains a veto. Betashares’ David Bassanese said the outlook for AI investment still looked strong.
What happens next
Mr Strickland advised investors to stay cautious until the dust settles over a few days. Consumer sentiment and NAB business survey figures are due on Tuesday 10 November.
More from this day: News Today: 6 November 2026, Australia and World Headlines
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