$US2.5 trillion Nasdaq sell-off spreads across Asia | The Business | ABC NEWS
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David Bassanese says the market reaction to the US Democrats victory in the US midterms election is “perplexing”.
Initially, the blue wave sparked a relief rally on markets globally. But fast forward 24 hours and stocks went south, with AI-related technology stocks plunging on concern over increased AI regulation and data centre restrictions in the US.
On Wall Street, the pain was extreme, the S&P 500 sank 4.4%. The Nasdaq plunged 5.5% into correction territory and the Dow lost 3.4%. It was Wall Street’s worst session since ‘Liberation Day’ tariffs were announced in April 2025.
BetaShares chief economist David Bassanese says he’s surprised by the magnitude of the falls, “there wasn’t any new news to hang that (sell-off) on apart from the Democrats getting that clean sweep. The Democrats still want data centres, they just want to impose more rules on the data centre rollout. So I think the market seems to have over reacted here.” The Wall Street sell-off spread to Korea and Japan, which have tech heavy markets.
Australia was less exposed given the tiny technology component of the main index. It was miners, exposed to the AI build out trade through copper, that dropped the most. By the close of trade on Friday, the ASX 200 lost 0.5% to 9,021, but for the week it posted a 1.3% gain.
IVIEW BLURB: Wall Street’s tech sell-off spreads to Asia as investors question the US Democrats’ approach to data centre investment. BetaShares chief economist David Bassanese spoke to Alicia Barry.
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