This update was written automatically with AI from market data and news wire reports, and published without review by a person.
Key Takeaways
- Nasdaq 100 plunged 6.4%, erasing $2.3 trillion in market value, driven by a massive technology rout and fears of AI regulation following Democratic midterm victories.
- President Trump warned of a potential decision to "destroy" what remains of Iran if a new nuclear certification is not reached, while simultaneously claiming a "big agreement" to end the Russia-Ukraine war is imminent.
- DraftKings (DKNG) shares tumbled after the company slashed its 2026 EBITDA guidance to $175M–$275M (down from $700M–$900M) due to heavy investments in its new "Predictions" platform.
- Macquarie Group (MQG) reported H1 net income of A$2.48 billion, slightly beating estimates, but announced an interim dividend of A$3.25/share, missing the A$3.50 target.
- Market volatility spiked as Treasury yields fell to 4.83% and Bitcoin dropped 5.4% to $75,810, reflecting a broad flight to safety amid geopolitical and regulatory uncertainty.
Technology Sector Crumbles Under Regulatory Fears
The Nasdaq 100 (QQQ) suffered its most severe selloff in nearly two years on Thursday, plummeting 6.4% as investors reacted to the prospect of tighter AI regulation. The rout was triggered by Democratic gains in the U.S. midterm elections, which analysts believe will lead to increased scrutiny of data center investments and AI infrastructure.
Semiconductor stocks bore the brunt of the selling, with the chipmaker index slumping 12%. Weak outlooks from industry leaders Qualcomm (QCOM) and Arm Holdings (ARM) exacerbated the decline, while Nvidia (NVDA) saw nearly 10% of its value evaporated in a single session.
Trump Signals "Soon Enough" Decision on Iran
In a series of provocative statements, President Trump indicated that a final decision regarding the conflict with Iran is imminent. Trump questioned whether the U.S. should "go further" to ensure Iran never achieves nuclear capabilities, stating he would "rather not destroy the rest of the country," but warned he might be forced to do so.
The President contrasted the Iran situation with the Russia-Ukraine war, where he claimed 25,000 people are being killed monthly. Despite the aggressive rhetoric toward Tehran, Trump expressed optimism regarding a settlement in Europe, noting he met with Russian envoy Kirill Dmitriev today and is "very close" to a massive agreement involving all of Europe.
DraftKings and Macquarie Face Financial Headwinds
DraftKings (DKNG) shocked investors by significantly lowering its full-year 2026 guidance. The company now expects Adjusted EBITDA between $175 million and $275 million, a steep drop from the previous range of $700 million to $900 million, citing a $700 million investment into its "Predictions" market segment.
Meanwhile, Macquarie Group (MQG) posted a solid A$2.48 billion half-year profit but faced questions regarding its dividend and regulatory standing. The firm confirmed it is working with the Australian Prudential Regulation Authority (APRA) on remediating prudential standards, even as it managed to beat net income estimates.
Political Fallout and Military Reshuffling
Following the GOP's midterm losses, Trump doubled down on his support for Defense Secretary Pete Hegseth, despite reports of internal party pressure for a leadership change. Trump praised Hegseth's efforts to eliminate "woke" culture in the military, claiming the U.S. currently has too many generals compared to World War II.
The President also continued his attacks on the U.S. electoral system, calling the elections "so crooked" during the same press briefing where he discussed the potential for a global peace deal in Ukraine. The combination of political instability and aggressive foreign policy signals has left global markets in a state of high alert.
Automated market updates written with AI from market data and news wire reports, published without human review.