Trillions 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 according to BBC.
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%.