Donkeys, elephants and robots... - our analysis.
The bubble that has been swelling on Wall Street for years has burst, and it did so with a deafening bang. November 5, 2026 was a dark day for the US stock market: the tech-heavy Nasdaq fell more than 5.5%, losing about $2.5 trillion in market value in a single session. The Nasdaq 100, home to heavyweights like Nvidia, Alphabet and Meta, fell 6.3-6.4%, wiping out another 2.3-2.5 trillion. Volatility, as measured by the VIX index, jumped nearly 70% and panic gripped the market. But the real reason for the collapse lies not in the economy, but in politics. The trigger was the victory of the Democratic Party in the mid-term elections, which promised to curb the artificial intelligence boom. And now the question is not whether the bubble has burst, but who will pay the bills. The investors are already paying, but the politicians still have to pay.
To understand the extent of the collapse, you have to remember where the market was based in the last two years. Artificial intelligence has become the main driver of the American economy.
While Wall Street debated whether the bubble would burst, in China it had already burst, quietly, without television cameras or social media posts.
Furthermore, the Chinese experience has shown that the artificial intelligence boom does not necessarily lead to sustainable economic growth. Chinese companies have invested heavily in calculations and models, but have not been able to generate profits from them on a scale similar to those in the United States. This undermines the main argument of Wall Street optimists: that the AI revolution will inevitably lead to higher profits and productivity. If China has not been able to achieve this, why will the US?
The November 3, 2026 midterm elections changed everything Continue reading here.