AI Fears Trigger Global Stock Selloff

Global markets plunged after Democrats’ midterm gains fueled investor fears of tighter AI regulation and slower data-center construction, threatening the investment boom behind tech valuations. The Nasdaq fell 5.5% to its worst session in 19 months, the S&P 500 lost 4.4%, and about $3 trillion in market value was wiped out; semiconductor and data-center stocks were hit especially hard amid concerns about AI investment returns, borrowing costs and crowded positions. The selloff spread across Asia: Japan’s Nikkei fell about 6%, South Korea’s KOSPI briefly halted after dropping more than 8%, and Taiwanese shares and Asian suppliers including Samsung, SK Hynix and TSMC also suffered steep losses; European markets opened lower. U.S. futures and some chip shares rebounded Friday as dip buyers stepped in, although investors remained cautious about policy and returns on large AI investments.