European stocks fall 2% but dodge sharper US and Asia declines

European stock markets fell about two percent on Friday, avoiding the sharper declines seen in the US and Asia, with AI-related companies hit hardest. The tech-heavy Nasdaq dropped 5.5 percent, its biggest fall in over 18 months, while Japan's Nikkei fell slightly more. European losses were milder due to a smaller tech sector weighting, though Nokia and ASML were notably affected. The US selloff was triggered by Democrats' unexpected midterm election sweep, including Texas, raising fears of stricter AI regulation and opposition to data centers. Analysts expect major firms to still increase AI investments next year.