AI stocks tumble as US midterm results fuel data centre concerns
Broader markets rallied while oil prices plunged after Republicans suffered a historic defeat in the US midterm elections, blamed on high prices, tariffs and the Iran war.
US tech stocks experienced a significant drop on Thursday following the Democratic victory in the US midterm elections, which raised concerns over AI spending and data center projects. The AI sector, already under scrutiny due to questions about investments in facilities, research and development, and chip development, faced renewed pressure.
Charu Chanana from Saxo Markets highlighted that the election would accelerate a reassessment of AI, with potential risks including more regulatory oversight, data center restrictions, and uncertainty surrounding capital spending. While the broader markets rallied, chip firms in Asia faced heavy losses, with South Korea's SK hynix down more than 7% and Samsung 5.5% in decline.
Other Asian tech stocks, such as Kioxia and Advantest, also saw significant drops. In contrast, Hong Kong saw gains driven by hopes for eased trade tensions between the US and China. Meanwhile, oil prices continued to fall, buoyed by optimism that Republican President Donald Trump would seek a deal to end the Iran war, contributing to inflation concerns and Treasury yields.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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