Trillions of dollars have been wiped off global technology stocks after Democratic victories in the US midterm elections fuelled fears of a slowdown in artificial intelligence investment.
The tech-heavy Nasdaq index plunged more than 5.5% on Thursday, wiping an estimated $2.5trillion (£1.9trillion) from its value, as investors reacted to the prospect of tighter restrictions on AI development and data centres.
Democrats won control of both houses of Congress following campaigns that included pledges to curb the expansion of energy-intensive data centres.
Shares in chipmaker Nvidia fell more than 9%, wiping over $400billion from its market value, while AMD and Micron dropped more than 17%.
The sell-off spread to Asia on Friday, with Japan's Nikkei falling 6.3% and South Korea's Kospi triggering a temporary trading halt after plunging more than 8%.
The rout has intensified concerns that the billions being invested in AI infrastructure may fail to generate the returns investors expect, with growing political opposition threatening future data centre construction.
President Donald Trump blamed the Democrats, declaring: "The Stock Market suffered one of the Worst Days in History based on the results of the Election."
FSTE100
The UK's flagship share index, the FTSE 100, was down 46-points at 10,782 shortly after opening this morning.
Brent crude oil futures were up 1.17%, sitting at $99.44 a barrel this morning.
Companies reporting
- International Consolidated Airlines - Q3 Results
- Rightmove - Full Year Trading Statement
- TBC Bank Group - Q3 Results