Uncertainty in US midterm elections drags down Asian stock markets and New York futures

Uncertainty surrounding the US midterm elections, with forecasts of a Democratic sweep, is dragging down Asian stock markets and New York futures. The Nikkei plunged 4.8%, Nasdaq futures lost 2.1%, and the VIX fear index surged above 20 points amid concerns over stricter regulation of AI infrastructure.

Uncertainty over the outcome of the US midterm elections, with early forecasts of a Democratic sweep in both houses of Congress, is causing sharp declines in Asian stock markets and Wall Street futures. Japan's Nikkei index fell 4.8%, South Korea's Kospi lost 3.6%, and Nasdaq futures dropped 2.1%. The VIX fear index surged above 20 points. The main concern is stricter regulation of artificial intelligence infrastructure and a freeze on server farms, especially given the lead of Democratic candidate for Texas governor, Gina Hinohosa, who has called for such a freeze. Goldman Sachs warns that uncertainty will continue to fuel volatility. Meanwhile, earnings reports from AMD and Palantir were strong, but their stocks reacted mixed.