Tech stocks battered as US poll result fuels AI fears
LONDON - Technology shares plunged on Friday after an unnerving rout on Wall Street as fears grew that Democrats would accelerate a backlash against AI after their crushing defeat of President Donald Trump’s Republicans in the US midterm elections.
Technology shares suffered a significant drop on Friday following a volatile day on Wall Street, as concerns arose that Democrats may intensify opposition to AI after their decisive victory in the US midterm elections. The decline in technology stocks spread globally, leading to losses in Asian markets such as Tokyo and Seoul. Susannah Streeter, a chief investment strategist at Wealth Club, highlighted the intensifying sell-off, emphasizing the impact on spending in the tech sector and the growing concern about returns on massive investments.
The dollar strengthened before US jobs data was released, while oil prices steadied after a week of steep declines. Analysts noted that investors were particularly unsettled by progressive Senator Bernie Sanders' call for a national moratorium on data center construction, which has gained support across the political spectrum. The decline in tech stocks has been particularly severe in Japan, with major companies like SoftBank, SK hynix, Samsung, TSMC, and Advantest all experiencing sharp drops.
Despite a potential rebound in the Nasdaq futures contracts, concerns about the hundreds of billions invested in the sector and the timing of returns continue to weigh heavily on markets worldwide.
Written by urgent.news from Bangkok Post Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Tech stocks battered as AI panic roils global markets freemalaysiatoday.com
