European stocks slide as AI investment fears spark global rout

US midterm results trigger AI regulation fears

Democratic Party wins in the US midterm elections sparked fears of a slowdown in artificial-intelligence spending. Investors are worried about possible government curbs on AI data-centre spending.

Euronews reported on 6 November 2026 that investors fear Democratic victories could lead to tougher regulations on AI data centres, contributing to a global sell-off in AI and chip stocks.

Asian markets plunge amid tech stock losses

Asian markets experienced a sharp decline on Friday 6 November 2026 as the sell-off in technology stocks spread from Wall Street. The MSCI AC Asia Index fell by more than 4 per cent following negative sentiment surrounding artificial intelligence and chip stocks.

Shares in Kioxia dropped 13 per cent during the session and closed down 8.7 per cent. SoftBank shares fell about 11 per cent, while Advantest dropped more than 8 per cent during the day. Tokyo Electron shares decreased by approximately 9 per cent.

At one point, the index fell 8.8 per cent. Samsung Electronics shares plunged nearly 10 per cent, and SK Hynix shares fell more than 11 per cent.

Taiwan’s Taiex index closed 4.5 per cent lower. Taiwan Semiconductor Manufacturing Co shares closed down 4.7 per cent, after recording a drop of almost 10 per cent earlier in the session.

Nasdaq-100 closes below all-time high

The Nasdaq-100 closed the session 11.9 per cent below its all-time high.

Rising oil prices and market sentiment

At the European open, Brent crude futures were trading just under $99 a barrel. Rising oil prices have further dampened investor sentiment.

Donald Trump blames Democratic election results

He wrote, "The Stock Market crashed today because the Dumocrats had a big Tuesday".

European markets reached record highs on 5 November

European stocks reached a new record level on 5 November 2026. This closing high was supported by strong earnings and a cooling of enthusiasm for artificial intelligence.

The region also benefited from an unwind of positions in the sector. On 6 November 2026, markets in Europe experienced a decline following a drop in U.S. markets driven by concerns regarding artificial intelligence.

Defining artificial intelligence in a market context

Artificial intelligence is defined as the ability of computational systems to perform tasks that usually require human intelligence, such as reasoning, learning, and problem-solving.

The subject is a research field encompassing mathematics, engineering, and computer science. It focuses on creating software and methods to help machines perceive their surroundings and use intelligence to achieve specific goals.