On a Friday morning in November 2026, European markets joined a sell-off that had started in the world's most ambitious technology bets. The fall, which first hit Wall Street and then rippled through Asia, revealed a question the market had long kept at bay: whether the vast sums poured into artificial intelligence will ever return what was promised. Political shifts in the United States, where Democrats gained control of Congress and several governors pledged to slow data-center construction, added a new layer of uncertainty to that question. For a continent that had been shielded by its less
European Shares Slide in Global AI-Driven Sell-Off as Spending Doubts and Midterm Fallout Hit Markets
Europe's cushion against the AI rout did not last through Friday
Mark
Europe had been steadier all week. Why did it fall anyway?
Mimi
Its markets hold fewer AI stocks, which had protected them. But when Wall Street dropped 4.4% on the S&P 500 and Asia followed, that protection wasn't enough. The STOXX 600 lost 1.6% and gave back the week's gains.
Luke
Worth noting that the leading decliners in Europe were media, healthcare and retail, not tech. The reporting doesn't explain why those sectors led.
Mark
What set off Thursday's fall in the US?
Mimi
Tech shares tied to AI infrastructure, like data centers, retreated sharply. The Nasdaq fell 5.52% and lost as much as $2.5 trillion in value.
Luke
Two causes are offered: doubts over whether AI spending will pay off, and the midterm result. How much each contributed isn't established. That's an interpretation of the moves.
Mark
What is the political piece?
Mimi
Democrats won both houses of Congress, and some Democratic governors-elect campaigned on pausing or stopping data-center construction, citing public opposition.
Luke
Campaign promises, though. Nothing here says any pause has been enacted.
Mark
And the Asian losses?
Mimi
Kospi fell as much as 8.8%, triggering a 20-minute halt. Samsung dropped nearly 10% and SK Hynix over 11%.
Luke
Those are early-trading figures. And the Moomoo executive's view that the market is headed lower is one person's read, not a forecast anyone can confirm.
El Pulso
- The Nasdaq plunged 5.5% on Thursday, wiping out roughly $2.5 trillion in value and dragging the S&P 500 down 4.4% in a single session.
- Seoul's Kospi tumbled as much as 8.8%, tripping a circuit breaker that froze trading for 20 minutes as Samsung and SK Hynix led the panic.
- Europe's STOXX 600 slid 1.6% early Friday, erasing the week's gains just as media, healthcare and retail stocks led the retreat.
- Democratic governors-elect vow to pause data-center construction, and investors now wait to see whether those pledges become binding policy and whether AI spending finally pays off.
On a Friday morning in November 2026, European markets joined a sell-off that had started in the world's most ambitious technology bets. The fall, which first hit Wall Street and then rippled through Asia, revealed a question the market had long kept at bay: whether the vast sums poured into artificial intelligence will ever return what was promised. Political shifts in the United States, where Democrats gained control of Congress and several governors pledged to slow data-center construction, added a new layer of uncertainty to that question. For a continent that had been shielded by its lesser exposure to AI, the shelter has now given way, and the coming weeks will show whether this was a passing tremor or the turning of a larger tide.
European shares opened sharply lower on Friday, dragged down by a sell-off that began in artificial intelligence stocks on Wall Street and swept through Asia before reaching the continent. The pan-European STOXX 600 fell 1.6% in early trading, erasing the week's gains, with media, healthcare and retail stocks leading the losses.
Europe had until now weathered the turmoil better than its peers, its markets carrying less exposure to AI-linked companies. That cushion gave way under the weight of a global rout. The trigger came Thursday in the United States, where the Nasdaq fell 5.52% and the S&P 500 dropped 4.4% as data-center and infrastructure stocks retreated hard.
Investors are increasingly uneasy about the enormous sums committed to AI and whether they will ever produce matching profits. The US midterm elections deepened that unease: Democrats won both houses of Congress, and several governors-elect pledged to pause data-center construction amid growing public opposition.
Asia absorbed the heaviest blows. Tokyo's Nikkei 225 lost 5.5%, Seoul's Kospi slid as much as 8.8%, and Taiwan's TAIEX fell more than 8%. Samsung and SK Hynix were battered, as were TSMC and Japanese chip makers Tokyo Electron and Kioxia.
Michael McCarthy of the brokerage Moomoo described a real shift in sentiment, noting that turning points tend to bring sharp swings as the market argues with itself. For now, the downward momentum appears to be winning. What follows depends on whether the political pledges take hold and whether the AI spending yields the returns investors are waiting for.
European shares opened sharply lower on Friday, pulled down by a sell-off that began in artificial intelligence stocks on Wall Street and moved through Asia before reaching the continent. The pan-European STOXX 600 index fell 1.6% in early trading, enough to erase its gains for the week. Most major European markets dropped by more than 1%, with media, healthcare and retail stocks leading the declines.
Until Friday, Europe had held up better than its counterparts. Its markets have less exposure to AI-linked stocks, and that had cushioned them through a turbulent week in Asia and the United States. The cushion did not last through the global rout.
The trigger came on Thursday in the United States, where technology shares, especially those tied to building AI infrastructure such as data centers, retreated hard. The tech-heavy Nasdaq fell 5.52% and lost as much as $2.5 trillion (roughly €2.23 trillion) in market value. The broader S&P 500 dropped 4.4%.
The underlying worry is about scale. Investors have grown increasingly anxious about the enormous sums being committed to AI, and about whether those investments will eventually produce profits to match. The US midterm elections added a second concern. Democrats won control of both houses of Congress, and several Democratic governors-elect campaigned on slowing AI development. Some promised to stop or pause data-center construction, reflecting growing public opposition to such projects.
Asia took the heaviest blows as markets there opened after Wall Street's fall. Tokyo's Nikkei 225 lost 5.5% in early trade. Seoul's tech-heavy Kospi slid as much as 8.8%, which triggered a circuit breaker that suspended trading for 20 minutes. Taiwan's TAIEX was also down by more than 8%.
The biggest Asian technology names bore the brunt. Samsung Electronics plunged nearly 10%, and SK Hynix slid more than 11%. Taiwan Semiconductor Manufacturing Company, or TSMC, was also among the hardest hit. In Japan, chip-related shares were battered: Tokyo Electron traded down around 9%, and Kioxia shed 13%.
Michael McCarthy, chief executive for Australia and New Zealand at online brokerage Moomoo, told Reuters that there has clearly been a real shift in sentiment. He said market turning points are often accompanied by strong disagreement, which shows up as huge swings in either direction. In his reading, Thursday night's emphatic sell-down suggests that the market is now headed downward.
What comes next depends on two questions: whether Democratic plans to pause data-center construction actually materialize, and whether the huge AI spending eventually yields the profits investors are waiting to see.
Citas Notables
There has been a real shift in sentiment, and last night's emphatic sell-down suggests that is the direction the market is now headed in.— Michael McCarthy, CEO for Australia and New Zealand at Moomoo, to Reuters
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