Wall Street collapses with Nasdaq down 5% after Democratic advance

Wall Street's main stock exchanges are operating sharply lower this Wednesday, November 5, dragged down by the repercussions of the political scenario in the United States, according to a report by Money Times.

According to Money Times, the Democratic Party won a majority in the House and Senate in the midterm elections, representing a significant change in the balance of power in Washington.

The most severe impact falls on the technology sector. The Nasdaq index fell 5.1% at 1 pm Brasília time, reaching 24,262.144 points, which represents a drastic decline of 1,474.369 points in the session.

According to Money Times and Investing.com, the fall is due to an intense liquidation and flight of investors from shares linked to artificial intelligence. The movement reflects fears of greater state regulation and a slowdown in the expansion of data centers.

According to Investing.com, the wave of sales of artificial intelligence assets is already creating additional turmoil in the market, putting the completion of the mega-IPO of the company Anthropic at risk.

What changes for the investor

The repositioning of capital highlights a significant migration towards defensive sectors on the American stock market. The prospect of strong regulatory intervention on artificial intelligence changes the risk pricing of technology companies, requiring increased attention to portfolio allocation in light of the new legislative configuration in Washington.

Automatically translated from Portuguese.