U.S. chip stocks extended their losses after the midterm elections as speculation that Democrats would target the AI industry in Congress fueled a rush to sell technology shares. According to Sina Finance, the S&P 500 fell 4.4%, its biggest decline since April 2025, while the Nasdaq 100 plunged 6.4%, wiping $2.3 trillion off its market value in a single day. The Philadelphia Semiconductor Index dropped 12%; Qualcomm and Arm Holdings Plc came under pressure after disappointing forecasts, while Tesla and SpaceX fell at least 9%. The selloff reversed Wednesday’s gains. Michael O’Rourke of JonesTrading said the slowdown in data center construction amid political changes was real, and earnings forecasts underpinning bullish valuations were no longer valid. He said investors did not know how the estimates would be adjusted and were reducing risk until the outlook became clearer, which he said would not happen soon.