Global stocks plunge amid AI slowdown fears after Democrats’ midterm triumph
Summary
Global stocks fell after a sharp sell-off in U.S. technology shares spread to Asian and European markets. Investors were concerned about returns on AI investment and the prospect of slower data-center construction; the Nasdaq dropped 5.5% on Thursday, its worst day in 19 months.Key Facts
- London’s FTSE 100 opened down 1.5%, or 166 points, at 10,615.
- Germany’s Dax fell 1.5%, France’s Cac 40 dropped 1.2%, and Spain’s Ibex declined 1.1% at the start of trading.
- Japan’s Nikkei 225 fell 6%, while South Korea’s Kospi dropped more than 8% in early Friday trading.
- Chip and storage companies led Thursday’s U.S. technology sell-off: SanDisk fell 22% and Western Digital fell 17%.
- The Vix volatility index rose 61% to its highest level since the early weeks of the Iran war.
- Despite the declines, the Nasdaq Composite remained up 4.6% for the year, while the FTSE 100 had gained almost 6.9%.
- The article links investor concerns to the risk that data-center construction and spending on AI infrastructure could slow.
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