Nasdaq drops 5% intraday as AI regulation fears hit US stocks

On November 6, 2026, The Guardian reported that the Nasdaq Composite slumped by up to 5% during Thursday trading, putting it on track for its worst single-day performance in 18 months. The index fell more than 10% below its recent record high, entering what market observers call “correction territory.” The report linked the decline to growing concerns that the artificial intelligence industry will face tougher regulation following the Democratic Party’s success in the midterm elections held that week. As Wall Street sustained widespread losses, investors appeared to price in the prospect of stricter oversight of AI companies in the wake of the election results. The article offered no indication of a rebound or official response from regulators, and no further market reaction was reported beyond the intraday decline. At the time of publication, the situation remained fluid, with the Nasdaq trading deep in the red and markets still digesting the implications of a potential regulatory tightening on the AI sector.