Global stocks fall amid ‘big worries over AI’ after Democrats’ midterms triumph

Global shares fell sharply after a technology sell-off in the United States spread to Asian and European markets. Investors were unsettled by concerns that spending on AI data centres could slow, weakening a major source of growth, while uncertainty following the Democrats’ midterm victory added to market nerves.

The Nasdaq fell 5.5% on Thursday, its steepest daily decline in 19 months, and the Vix volatility index rose by more than 60%. On Friday, Japan’s Nikkei dropped 6% and South Korea’s Kospi fell more than 6.5%; London’s FTSE 100 fell as much as 2.35% before closing down 1%. US shares recovered some ground on Friday after a report showed 165,000 jobs were added in October and unemployment eased to 4.1%, though analysts warned that further selling remained possible.