U.S. Tech Stocks Plunge Amid AI Valuation Skepticism

U.S. equity markets experienced a significant sell-off on November 3, 2026, with big tech and semiconductor stocks leading the decline. The Nasdaq entered correction territory as investors weighed the results of the U.S. midterm elections and grew skeptical of AI capital expenditures. Chip stocks have fallen nearly 30% from their June peaks, and investors are pushing for a lower valuation for Anthropic, potentially reducing it from $2 trillion to between $1.5 trillion and $1.6 trillion.

Financial pressure is mounting for hyperscalers, which are shifting from cash-flow positive to free cash-flow negative. This trend has triggered a surge in investment-grade debt issuance, estimated at $500 billion this year. Meta Platforms Incorporated is exploring a $20 billion cross-border bond offering, while Oracle recently issued debt with a half-percentage point concession.

Corporate strategies are also shifting in response to geopolitical tensions. Nvidia Inc. instructed data center partners to ensure at least 51% of services are sold outside of China. Meanwhile, the U.S. government reported military strikes on an Iranian island in the Strait of Hormuz to protect commercial shipping, and the Trump administration is discussing a potential summit with Vladimir Putin and Xi Jinping.