Wall Street Loses $3.2 Trillion: Democrats' Midterm Victory Triggers AI Selloff

NDX fell 6.2% over 24 hours, coming under heavy selling pressure; with an RSI of 22 it is in oversold territory and the price is clearly below the SMA20/SMA50. MACD is below its signal line and negative, and momentum is weak. A Democratic midterm victory and a selloff in AI stocks could weigh on risk appetite in the short term. However, oversold conditions may set the stage for bargain-hunting rebounds; confidence in the downside should therefore be limited. A downward bias is likely over the next 1-3 days, with high volatility.

QQQ fell 6.2% in 24 hours, dropping clearly below its SMA20 and SMA50; with an RSI of 22 it is in oversold territory and MACD is negative below the signal line. Reports indicate that a Democratic midterm victory triggered a selloff in AI stocks, creating a $3.2 trillion loss; such political uncertainties may suppress risk appetite in the short term. However, oversold conditions could set the stage for rebound buying, and part of the decline may already be priced in. Therefore, although I see the direction as downward, I maintain moderate confidence; volatile trading and possible short-term rebound risk exist over the next 1-3 days.

NVDA fell 12% in 24 hours to 181.57, with its RSI at 17.7 placing it in oversold territory; this could set the stage for short-term rebound buying. However, the price is below its SMA20 (198.97) and SMA50 (205.91), while MACD is negative and trading below its signal line; the trend has deteriorated. News of a Democratic midterm victory and an AI selloff wave is weighing on risk appetite for technology stocks and reinforcing negative sentiment. Sharp short-term bounces may occur after the steep decline due to the oversold condition, so I am cautious in calling direction. The overall bias is downward, but volatility is high.

AMD fell more than 16% in the last 24 hours to 402.5, with its RSI at 23, placing the stock firmly in the oversold region. The MACD is negative and below the signal line, while the price sits well below both the 20‑period and 50‑period simple moving averages, indicating a weak short‑term trend. The news reports that the Democrats’ midterm election victory triggered a sell wave in AI stocks, and Wall Street suffered a $3.2 trillion loss. This development serves as a negative catalyst for AI‑related semiconductor shares such as AMD. Although oversold conditions could create a window for reactionary buying, prevailing momentum and the negative news flow continue to support downside risk. In the 1‑ to 3‑day outlook, a choppy but downward‑trending path is expected; however, the confidence level should remain moderate due to the possibility of reactionary purchases.