{
  "id": 18460451,
  "title": "Global stock rout deepens as AI data centre fears fuel worst US chip sell-off since 2020",
  "url": "https://urgent.news/2026/11/06/global-stock-rout-deepens-as-ai-data-centre-fears-fuel-worst-us-chip",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-06T07:01:41.000Z",
  "source": {
    "name": "Euronews",
    "slug": "euronews",
    "url": "https://www.euronews.com/2026/11/06/global-stock-rout-deepens-as-ai-data-centre-fears-fuel-worst-us-chip-sell-off-since-2020"
  },
  "original_language": "en",
  "account": "On Friday, Japanese stocks experienced a steep decline, with the Nikkei 225 dropping about 7% before recovering slightly. The sell-off in AI and chip stocks extended beyond Wall Street to Asian markets, dragging down indices across the globe. Investors were uncertain whether Democrats' victories in the recent US midterm elections would result in stricter regulations for data centers. These projects had faced opposition from various demographics, with several elected officials pledging to curtail construction. Notably, Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez had previously proposed a federal moratorium on such developments. The election outcomes intensified worries about the return on investment for companies that had allocated billions towards AI, particularly with rising borrowing costs affecting the speed and feasibility of data center construction, which could have a negative impact on US economic growth and the demand for chips and electricity.\n\nThe US chip sector suffered its most significant loss since 2020, with the Philadelphia Semiconductor Index plunging 12.2% on Thursday, its worst one-day decline since 2020. The index has lost approximately 16% of its value over the past week. The Nasdaq Composite, S&P 500, and Dow Jones Industrial Average all recorded their steepest percentage drops since April 2025. President Donald Trump attributed the market's decline to Democrats' strong showings in the midterm elections, stating that voters alone were responsible for the downturn. Asian chip stocks also plummeted, with Kioxia, SoftBank, and Advantest experiencing declines of over 10%. In South Korea, the Kospi fell by 8.8%, prompting a 20-minute trading suspension. SK Hynix and Samsung Electronics in South Korea were also down by around 10% and 8%, respectively. In Taiwan, the Taiex closed 4.5% lower following an initial drop of more than 8%. TSMC, a prominent Taiwanese chipmaker, saw its shares fall as much as 8.5% during trading hours. Hong Kong's Hang Seng and Shanghai Composite also experienced slight declines of 0.7% and 1.3%, respectively, while Australia's S&P/ASX 200 dipped by 1%. Analysts suggested that the sell-off might be excessive, but investors awaited market stabilization before making further decisions. Euro Stoxx 50 futures declined by approximately 1% as of early trading hours, ahead of the European market's opening. Brent crude futures rose by 1.4% to just below $100 per barrel, reversing Thursday's gains as traders kept a close eye on potential progress in US-Iranian talks. The dollar strengthened against the euro and the yen in early trading, while gold prices slipped by 1.1% to $4,044 per ounce.",
  "summary": "S&P 500 companies lost a record $2.9 trillion (€2.6 trillion) in market value on Thursday. Asian tech shares fell on Friday as investors weighed whether Democrats’ US midterm wins could lead to tougher rules on AI data centres.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}