Key facts
- The Nasdaq fell 6.4% on Thursday, its worst day since April 2025, confirming a technical correction, per Morningstar.
- The S&P 500 fell 4.4% on Thursday, wiping out $3 trillion in value, per Morningstar.
- South Korea's Kospi fell more than 6% on Friday, with SK Hynix and Samsung trading temporarily halted, per Morningstar.
- Japan's Nikkei 225 fell 5.9% on Friday, entering bear market territory, per Morningstar.
- US futures tied to the Nasdaq and S&P 500 were up 0.3% and 1.4% on Friday, per Morningstar.
- The yield on 10-year US Treasuries was last seen at 4.85%, per Morningstar.
A selloff in AI and technology stocks spread from Wall Street into Asia and Europe on Friday, November 6, 2026, after the Democratic Party's sweep in the US midterm elections, according to Morningstar. The tech-heavy Nasdaq had fallen 6.4% on Thursday, its worst day since April 2025, confirming a technical correction, a 10% drop from its October 6 peak, Morningstar reported. The S&P 500 fell 4.4% on Thursday, wiping out $3 trillion in value, its biggest drawdown since April 2025.
In Asia, South Korea's Kospi fell more than 6% on Friday, with memory chip makers SK Hynix and Samsung temporarily halted earlier in the session. The two stocks were down around 19% and 13% respectively since the election outcome, with the broader index 12% lower, Morningstar reported. Japan's Nikkei 225 fell 5.9% on Friday to enter bear market territory, with losses in semiconductor-related stocks and tech investment group SoftBank Group.
In Europe, the Morningstar Europe Market Index was down 1.7% on Friday, with selling broad-based even as ASML, hit in the prior session, showed signs of rebounding. US futures tied to the Nasdaq and S&P 500 were up 0.3% and 1.4% respectively, Morningstar reported, with CoreWeave and Advanced Micro Devices up 7% in pre-market trade, Micron up 8%, Nvidia up 4% and Iren rebounding 17%.
Michael Roeg, senior equity analyst at Degroof Petercam, told Morningstar: "This is another stick to hit the AI buildout with." He cited previous pullbacks on concerns over hyperscalers' free cash flow, funding circularity and neocloud risks. The yield on 10-year US Treasuries was last seen at 4.85%, Brent crude oil futures hovered above $98 per barrel and spot gold eased after climbing to $4,078 overnight, Morningstar reported.