Nasdaq Falls More Than 5.5% as Investors Fear an AI Slowdown

Why did prices rise again after that fall?

Commercial ships in the region are still coming under attack. Iranian authorities also said ships had hit sea mines. These dangers have raised concern about shipping through the Persian Gulf.

Why is the Strait of Hormuz so important here?

It is a vital shipping route. Oman said it is still holding talks with Iran about a system for the two countries to jointly control traffic through the strait.

What does Oman hope those talks can achieve?

Oman’s foreign ministry said a joint system could end the state of war and prevent new confrontations in the region. However, there is still serious concern about a wider conflict.

What has Russia said about the situation?

Moscow warned Russian citizens not to visit Iran. It said there was a risk of a new escalation, meaning the conflict could become more serious.

Russia is also talking directly with Iran, isn’t it?

Yes. Russian President Vladimir Putin met Mohsen Rezaei in Moscow on Thursday. Rezaei is the secretary of Iran’s Supreme National Security Council.

What did they discuss?

They discussed stronger ties between Russia and Iran. Rezaei said they also discussed building gas pipelines from Russia to Iran.

What could those pipelines do for Iran?

Rezaei said Russian gas could help Iran deal with its own gas shortages. He also said it could help Russia sell gas to neighbouring countries.

Why does a major gas producer have shortages?

Iran has had natural gas shortages for a long time. Gas is important for heating systems. Tehran says the war with the United States and Israel made the problem worse.

What does Tehran say happened during the fighting?

Tehran says the United States and Israel struck important Iranian infrastructure, including natural gas refineries. The most intense fighting lasted nearly 40 days.

So, sea safety and talks over the strait remain key issues.

Yes. Oman says its talks with Iran are aimed at controlling traffic through the Strait of Hormuz and preventing renewed conflict.

Thank you, Noah.

Our second story is about a sharp fall in technology shares after the US midterm elections.

Grace is LinguaWire's correspondent for business, and she has been covering the market reaction.

Hello, Daniel. Major technology companies in the United States and Asia lost hundreds of billions of dollars in market value. Investors are concerned that artificial intelligence development could slow down.

How serious was the fall in the United States?

The Nasdaq Composite closed more than 5.5% lower. The Nasdaq is a stock market index with many technology companies. It lost an estimated 2.5 trillion dollars in market value, or about 1.9 trillion pounds.

Was the Nasdaq the only US market to fall?

No. Other major US stock indexes also fell sharply. They recorded their worst day since 2025.

Why did the election results worry investors?

Democrats won control of both the Senate and the House of Representatives in Tuesday’s midterm elections. In many races, Democratic candidates campaigned to slow AI development and limit data-centre construction.

What are data centres?

They are centres that help power AI technology. There were dozens of measures on ballots around the country that aimed to restrict the development of these centres.

Was this an important issue in Texas?

Yes. Texas governor-elect Gina Hinojosa, a Democrat, campaigned strongly against data centres. She promised a moratorium on new construction in the sector. A moratorium is an official temporary stop.

How did markets in Asia react?

Technology-heavy indexes fell sharply on Friday morning. Japan’s Nikkei 225 was 5% lower in early trading. Panasonic shares lost more than 10%, while Hitachi shares fell by almost 8%.

And what happened in South Korea?

South Korea’s Kospi index fell by more than 8.5%. Chipmaker SK Hynix lost more than 11.5%, while Samsung shares were down by nearly 10%.

What are political leaders saying after this market fall?

President Trump blamed his political opponents in a social media post. Some Democrats say AI has grown too large without enough safeguards or oversight. Senator Bernie Sanders called for a national moratorium on data centres.

What could happen next?

Democrats will control Congress for the rest of President Trump’s presidency. They have said they want to change rules for AI and data-centre development.

Thank you, Grace.

Part one: vocabulary.

Route.

A route is a way from one place to another. In the story, “It is a vital shipping route.”

This bus route goes to the airport.

Traffic.

Traffic means vehicles, ships, or people moving along a route. In the story, “Oman says its talks with Iran are aimed at controlling traffic through the Strait of Hormuz and preventing renewed conflict.”

There is heavy traffic on the road today.

Jointly.

Jointly means together with another person or group. In the story, “Oman said it is still holding talks with Iran about a system for the two countries to jointly control traffic through the strait.”

The two schools jointly planned the event.

Part two: the grammar.

Comparatives with more: “It said there was a risk of a new escalation, meaning the conflict could become more serious.”

We use “more” before many adjectives to compare and show a higher degree.

In the story, “It said there was a risk of a new escalation, meaning the conflict could become more serious.”

The situation could become more dangerous.

Repeat after me: It said there was a risk of a new escalation, meaning the conflict could become more serious.