Global tech shares drop sharply amid AI slowdown fears and US midterms

Trillions of dollars were wiped from the market value of major technology companies as investors reacted to the US midterm election outcome. Democrat candidates, who won both the US Senate and House of Representatives, expressed opposition to the data centres required to power artificial intelligence and campaigned to slow their growth. The sell-off saw major indexes plummet, with the Nasdaq falling 5.5% and significant drops recorded among chipmakers and tech giants like Apple, Nvidia, and Tesla. Markets in Europe and Asia also experienced substantial declines as the worries spread globally. Analysts noted that the market slide compounds existing anxieties over whether massive spending on AI infrastructure will yield returns. Meanwhile, political figures traded blame over the drop, with Donald Trump pointing to his political opponents and Democrats arguing that AI development has lacked necessary safeguards.