The Nasdaq Composite plunged 5.5% into correction territory, while the S&P 500 shed 4.4% and the Dow dropped 3.4%. The selloff centered on fears that a Democratic-controlled Congress could impose stricter AI regulations and slow data center expansion. Chipmakers took the hardest hit, with Nvidia falling 9.3%, AMD 17.3% and Micron 17.5%.

The sharp decline in equities sent investors toward safer assets, pushing the US 10-year Treasury yield near a two-month low of 4.85%. Oil prices also retreated as expectations of Democratic pressure to end the Iran war eased concerns over inflation.

The dollar index strengthened to around 101.7 before Friday’s October jobs report, following encouraging labor data. Private employers added 86,000 jobs in October, while jobless claims fell to their lowest level in 57 years.

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