Global stocks slide on fears of AI spending curbs after Democratic election win

Global stocks fell sharply Friday as a Democratic victory in US congressional elections fueled fears of tighter regulation on AI data-center spending, deepening a worldwide market rout. The pan-European STOXX 600 dropped 1.6%, erasing its weekly gains. Losses swept across sectors, with media, healthcare, and retail each falling over 2%. Tech firms like Siltronic and ASMI declined, while Teleperformance plunged 18% after cutting its revenue outlook. Investors also cited concerns over weak returns, lofty valuations, and debt-fueled investment in the AI sector. In Asia, China's CSI 300 fell 1.4% and Hong Kong's Hang Seng dropped 1.3%, though both posted weekly gains. Analysts noted Beijing's support measures helped limit losses, but cautioned that China's AI supply chain remains vulnerable to US market sentiment.