New York:U.S. stock markets experienced a massive sell-off, with major indices on Wall Street suffering sharp declines. Unconfirmed estimates suggest that approximately $4 trillion in market capitalization was wiped out in just 100 minutes of trading.
According to Yemen News Agency, the Iranian news agency "Fars" reported that the Nasdaq index fell by 5%, the S&P 500 dropped by 3.26%, and the Dow Jones Industrial Average declined by 2.16%. This wave of selling has fueled investor concerns regarding the future of U.S. markets.
This turbulence follows a political shift in the United States, as the Democratic Party secured majorities in both the House of Representatives and the Senate during the midterm elections. This sets the stage for a new phase of political equilibrium between a Democratic-controlled Congress and the administration of Republican President Donald Trump. Although U.S. markets posted strong gains during Wednesday's session following the election results, the resurgence of selling pressure on Thursday has highlighted investor concerns regarding anticipated economic and regulatory policies, particularly those affecting technology companies, artificial intelligence, and data centers.
These concerns center on the potential for stricter oversight of the expansion of AI infrastructure, as well as the impact of political polarization in Washington on economic decision-making, government spending, and investment-related legislation.
Furthermore, technology stocks are facing pressure stemming from their high market valuations, alongside questions about whether these companies can generate profits commensurate with their massive investments in the artificial intelligence sector.
This sharp decline brings back to the fore questions about whether Wall Street is undergoing a temporary price correction, or if the markets are heading toward a broader contraction in the valuations of technology firms—a shift whose repercussions could potentially extend to global markets.
