Wall Street tumbled on the 5th after the US midterm elections, with the Dow plunging over 1,800 points, the Nasdaq entering correction territory, and the Philadelphia Semiconductor Index crashing over 12%. The Democratic victory sparked concerns over data center regulation, funds rotated out of AI stocks, and chip stocks and TSMC ADR fell together.
Global Markets
Democrats took control of Congress in the U.S. midterms, raising fears of tougher AI data center regulation. U.S. stocks plunged across the board on the 5th, with the Dow down 1833 points, the PHLX Semiconductor Index down 12.25%, and the S&P 500 losing 3 trillion dollars in market value.
US midterm election results are gradually becoming clear, with Democrats performing better than expected. KGI Bank notes the post-election focus is shifting to policy wrestling and industry impact, with AI regulation becoming a variable for the tech sector, the dollar soft in the short term, the 10-year US Treasury yield falling back to around 4.9%, and a balanced stock-bond allocation recommended.
The Democratic Party won control of both the U.S. House and Senate in the midterm elections, pressuring tech stocks as funds rotated into gold assets. The three major U.S. gold miners surged nearly 10%, spot gold reclaimed above $4,000, and Taiwan-listed gold mining ETFs rose in tandem.
Wayfair's third-quarter total revenue rose 9.7% year over year to $3.42 billion, with the U.S. market up 11.4% to $3.0 billion, net income of $62 million swinging from loss to profit, active customers and orders both rising, and profit margin hitting its best since 2020.
According to Bloomberg statistics as of October 30, 2026, the tracked index of Fuhua Japan Leaders 00949 posted a five-year total return of 148.50%, surpassing the Nikkei 225, S&P 500 and NASDAQ-100, demonstrating the long-term momentum of large-cap Japanese leaders.
Democrats swept the House and Senate in the U.S. midterm elections. Hsieh Chin-ho says four pressures drove the global stock plunge: political upheaval, cash-burning AI arms race, tech earnings shocks, and a memory-chip price war. Taiwan stocks fell 8113 points but remain the most resilient, with 50,000 likely delayed until next year.
Democrats retake both the House and Senate in the U.S. midterms, Musk's over $445 million backing of Republicans fails, Tesla and SpaceX both fall premarket, adding uncertainty to AI regulation, autonomous driving and Texas data-center policy.
The US and Iran have signaled negotiations, cooling market concerns over supply disruptions. International oil prices plunged more than 7% on Monday, European natural gas fell, while gold rebounded after breaking below $4,000.
Marvell Technology announced an all-stock acquisition of Lumentum with an enterprise value of USD 115 billion, a 23.9% premium, expanding its AI optical communications footprint, with a total addressable market of USD 550 billion, and the transaction is expected to close in the first half of 2028.
On Oct. 30, Apple surpassed Nvidia to reclaim the top global market cap spot, worth over 5 trillion dollars. With restrained AI spending showing resilience, it is up 26.7% this year to lead the Magnificent Seven, with the market focused on the Nov. 3 earnings and outlook.
NVIDIA partners with Oracle to expand Vera Rubin deployment, AMD teams with Meta to advance AI systems, Google Cloud up 103% YoY, TSMC expands capacity, Intel recovers; institutional analysis of ten major tech stocks and positioning strategies for reference.
Wall Street ended a turbulent October, with AI-related stocks shifting from the main driver to a source of selling pressure. The Nasdaq fell 5.3% in October, the S&P fell 0.9%, and the Dow rose 1.7%. Markets are focused on cash flow, the Federal Reserve's rate moves, and the November 3 midterm elections.
US midterm elections will be held on the 3rd. If Democrats sweep both chambers, AI and data centers could face stricter scrutiny, putting the supply-chain roles of TSMC, Foxconn, Quanta and Delta Electronics in focus.
TraderTraitor, a hacker group linked to North Korea, stole $6.36 billion in crypto assets from Binance on Oct. 29, including 18,270 bitcoins. As of Nov. 1, Binance had recovered about 95% and compensated customer losses with its own funds.
US stocks recently pulled back with volatility, as the Nasdaq and the Philadelphia Semiconductor Index weakened in tandem. The market is focused on whether AI capital spending by tech giants such as Microsoft, Google, and Meta can deliver returns, with future spending plans and supply-chain impact in focus.
The S&P 500 has gained about 100% since 2023, driven mainly by NVIDIA, Micron and Microsoft, as AI euphoria, interest rates and high valuation concerns heat up. Foreign media advise holding long-term for five years to ride out volatility, and cautiously buying financially sound companies on sharp declines.
Tokyo Growth-listed Iore's board resolved on October 30 to sell all 151.21 bitcoins by end-November, expecting to recover about 1.831 billion yen and book a loss of about 254 million yen, with proceeds redirected to AI data centers and computing power; HYPE holdings to be retained.
After disappointing earnings from Alphabet and Intel triggered a tech selloff last week, markets this week are focused on the U.S. midterm elections, October nonfarm payrolls, and earnings from Apple, AMD and over a hundred other companies, reassessing AI returns, policy outlook and money market direction.
Aftermath of Binance's $6.3 billion hack continues as the hacker keeps selling TRX in small, high-frequency batches after swapping into TRX on the Tron chain. TRX traded at $0.302, falling below its pre-hack level to a new low since March, with the remaining 475 million tokens in focus as selling pressure.