Symbolic imageChip stocks rebound after Nasdaq's AI-driven rout
Chip stocks bounced back after a sharp tech sell-off that followed the Democrats' midterm win. Bloomberg reports that Wall Street strategists see the drop as a chance to buy.
The Nasdaq fell 5.5% on Thursday, 5 November, its worst session since April 2025 and its largest one-day drop in points on record, wiping out more than $2,500bn in market value, Le Monde reports. The paper sees the Democrats' large midterm win on 3 November as the catalyst, because it raised the risk of stricter AI rules and local limits on data centres. The Financial Times says the vote triggered an exodus of hedge funds and retail investors from the AI trade. Friday ended with a slight rebound.
Asia and debt markets feel the shock
The sell-off spread to Asia on Friday, 6 November, with Japan's Nikkei and South Korea's Kospi sharply lower before partly recovering. Bloomberg says the slump is reviving neglected Asian trades from China to India, and that Meta's bond sale shows a new reality for tech debt.
Anthropic's IPO under scrutiny
Investors question Anthropic's valuation of roughly $1.5tn, and Bloomberg calls its IPO AI's true reckoning. The Jerusalem Post says the offering could be smaller or delayed, while backer XN plans to double down, the Financial Times reports.
Other opinions
Le Monde calls the drop a welcome reminder that AI cannot expand regardless of physical limits and citizens' consent, while Bloomberg stresses the strategists' view of a buying opportunity.