Global market rout deepens after midterms intensify AI fears

HONG KONG — An intensifying rout of tech stocks hit global markets Friday, with a surge of red tickers spreading from Wall Street to Asia and Europe after the blue wave of the U.S. midterm elections fueled fears over AI development.

The steep losses in Asia — Japan’s Nikkei suffered its worst week since 2020 — came after a dramatic plunge in U.S. tech stocks following the success of anti-AI candidates, which deepened concerns about the durability of the AI boom.

Some $2.3 billion in market value was wiped off the tech-focused Nasdaq 100, which dropped 6.3% on Thursday. Another $2.8 trillion was erased from the S&P 500’s market value as it fell 4.4% — their worst day in 18 months, when President Donald Trump’s global tariffs rocked markets.

U.S. futures were mixed early Friday, but European shares also opened lower after the dramatic selloff continued in Asia.

South Korea’s Kospi index tumbled more than 8%, triggering a temporary market-wide trading halt. There, AI data center memory suppliers Samsung and SK Hynix plunged more than 10% in the early hours, before recovering some of their losses. Japan’s Nikkei 225 index fell as much as 6%, entering bear-market territory.

In Taiwan…

Original source: https://www.nbcnews.com/business