AI stock rout: is the tech bubble bursting?

Global financial markets were thrown into turmoil after Thursday's Wall Street plunge, driven by a rout in AI and technology stocks that extended to Asia and Europe on Friday, wiping over $3.2tn from US stock values. The sell-off was triggered by the Democrats' sweeping US midterm election victory, with investors predicting tighter control of AI and datacentre construction, slowing a key economic growth engine. This follows months of warnings over AI company valuations, with the market's Cape ratio at its highest since 2000. The "magnificent seven" tech stocks account for over a third of the S&P 500, impacting savers worldwide. While some analysts see this as a reset, others warn a crash was overdue, though UBS says fundamentals do not justify a prolonged downturn.