Democratic Election Victory Unsettles AI Investors, Stocks Plunge Sharply

The news reports that the Democrats' election victory has unsettled artificial intelligence investors and led to a sharp decline in stocks; this is a short-term negative risk factor for AI-focused technology stocks such as GOOGL. Technical indicators are already weak: the price is below the SMA20 and SMA50, the MACD is in negative territory, and the RSI at 42 is at a neutral-to-weak level. However, the RSI is not in oversold territory and the MACD is very close to its signal line, suggesting that the decline may remain limited. Because the news's impact involves uncertainty and the market reaction may already be priced in, I do not have high confidence. Downward pressure is likely in the short term, but additional confirmation is needed for a sharp decline.

NVDA fell 12% in 24 hours to 181.57, with its RSI at 17.7, placing it in oversold territory. The MACD is negative and below its signal line, and the price is significantly below both the SMA20 and SMA50, indicating a weak short-term trend. The news reflects concerns that a Democratic victory could negatively impact the artificial intelligence investment narrative; such political uncertainties may sustain selling pressure on high-beta AI stocks. However, oversold conditions could set the stage for short-term rebound buying, so confidence in further downside is limited. I expect a downward bias over the next 1-3 days, but volatility will be high following the sharp decline.

AMD fell sharply by more than 16% in 24 hours to 402.5; with an RSI of 23, it is in oversold territory and clearly below the MACD signal line, indicating weak momentum. The price is trading well below the SMA20 and SMA50, confirming a downtrend in the short term. The Democratic election victory may create regulatory/incentive uncertainty for the AI investment narrative, potentially dampening risk appetite for high-beta semiconductor stocks. However, oversold conditions could set the stage for short-term rebound buying; therefore, while maintaining a bearish bias, I keep confidence at a moderate level. In the 1-3 day outlook, a volatile but downward-sloping trend is expected.

ASML has already fallen sharply by 12.8% in 24 hours, with its RSI at 19.9, placing it in oversold territory; short-term rebound buying may be seen at such levels. However, the price is clearly below the SMA20 and SMA50, and the MACD is negative and below the signal line; the trend has deteriorated. The news creates political uncertainty regarding appetite for AI investment, and semiconductor equipment stocks like ASML are sensitive to this theme. Due to the oversold condition, the pace of the decline may slow, but there is no clear catalyst for a recovery. In the short term, downward pressure and high volatility are expected.