AI Bubble Fears Trigger Global Tech Sell-Off

Global stock markets have swung sharply from euphoria to panic following the Democratic victory in the US midterm elections, with a massive sell-off in technology shares triggering fears of an AI bubble bursting. The Nasdaq fell 5.52% on Thursday, with losses spreading to Asia and Europe on Friday. Asian markets suffered their worst drop since 2020, with losses nearing 9%, while European declines were more moderate, ranging from 0.6% for Spain's Ibex to 2% for Germany's Dax. Wall Street rebounded on Friday, with the Nasdaq up 1.52% by the European close. Experts cite concerns that a Democratic Congress may impose stricter regulations on data centers, alongside inflation, rising interest rates, and geopolitical uncertainty over Iran. The sell-off has hit semiconductor and digital infrastructure companies hardest, with Nvidia losing over 17% and Alphabet over 20% in the past month. Analysts note that Asian markets are particularly vulnerable due to their deep integration into global tech supply chains, while experts agree that geopolitical instability will continue to drive investor uncertainty.