Wall Street fear gauge soars as ‘steamroller’ shows up for the AI trade

The Straits Times · The Straits Times · 2026-11-05 23:44 UTC

Wall Street fear gauge spikes as investors sell off AI stocks after the Nasdaq 100 drops 6.4% on midterm uncertainty. Read more at straitstimes.com.

- Wall Street’s fear gauge surged as the AI trade sold off sharply after the Democrats’ midterm win raised worries about slower AI infrastructure growth.

- The Nasdaq 100 fell 6.4%, wiping out US$2.5 trillion in value, while the VIX jumped to an eight-month high as investors rushed to hedge losses.

- Hedge funds, retail traders and leveraged ETFs all sold stocks, and analysts warned the AI trade could face a deeper, lasting revaluation.

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