Global tech stocks plunge over AI slowdown fears after US midtermspublished at 07:25 GMT
Image source, ReutersTrillions of dollars have been wiped off the stock value of
major tech firms in the US, Europe and Asia after the US
midterm elections sparked concerns of a slowdown in artificial intelligence
(AI) development.
Shares in firms across the tech sector plummeted following
Democratic wins in Tuesday’s midterms.
A number of Democratic candidates had run campaigns on slowing AI – and there are broader concerns about whether the huge sums being spent on the technology will pay off.
The tech-heavy Nasdaq composite index closed down by more
than 5.5% on Thursday, losing an estimated $2.5tn (£1.9tn) in market value,
according to Dow Jones data.
Other key US stock indexes also saw big
losses in their worst days since 2025.
In Asia, tech-heavy indexes fell sharply on Friday morning
as firms that make the computer chips and other equipment that power AI saw
their shares slide.
The sell-off also hit European chipmakers. In European
trading on Thursday, shares in chipmaker Infineon fell by more than 8.5% while
tech equipment manufacturer ASML dropped by 6.5%.