$5.7 trillion "vanished"! A "priced-in" midterm election has triggered a "tech stock disaster."
Less than 24 hours after the Democratic Party's landslide victory in Congress, Wall Street experienced a stunning reversal: the Nasdaq 100 recorded its largest single-day drop since March 2020, the VIX fear index surged nearly 70% from historically calm levels, and the overall market capitalization of U.S. stocks has accumulated a loss of $5.7 trillion since the peak on October 6. Retail investors fled in panic, hedge funds followed suit in a stampede, and quantitative strategies were mechanically liquidated—three forces simultaneously crashed the market, leading to a liquidation-style repricing in the AI sector, as long-standing bubble concerns were suddenly ignited in the face of an election result.
