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Global stock markets fell sharply on Friday as fears of a slowdown in artificial intelligence investment spread following the Democrats’ victory in the US midterm elections.
According to The Guardian, European markets suffered heavy losses after a major Wall Street sell-off on Thursday triggered declines across Asia.
London’s FTSE 100 dropped 1.9 percent in morning trading, while Germany’s Dax fell 1.9 percent and France’s Cac 40 declined 1.5 percent.
In Asia, Japan’s Nikkei 225 plunged six percet, while South Korea’s Kospi lost more than eight percent.
THe losses followed a 5.5 percent fall in the Nasdaq on Thursday, its worst session in 19 months, as technology stocks came under pressure.
Investors are concerned that Democratic control of Congress could slow investment in AI infrastructure and data centres.
Susannah Streeter, chief investment strategist at Wealth Club, said: “The tech sell-off has intensified, with the pain of the brutal sell-off on Wall Street carried straight through to Asia and knocking sentiment in Europe.”
Analysts also warned that uncertainty surrounding the Iran conflict could add further pressure to financial markets.
However, despite the sharp declines, major stock indices remain higher than at the beginning of 2026.
