European and Asian stocks fell sharply on Friday, 6 November, after a Thursday tech selloff on Wall Street, as Democrats’ midterm win fueled fears of curbs on AI data-centre spending. The AI stocks sell-off reached markets across Europe and Asia.
The tech-heavy Nasdaq fell 5.52% on Thursday and shed as much as $2.5 trillion in market value, while the S&P 500 plunged 4.4%, according to DW. The Nasdaq had its worst session percentage-wise since April 2025, according to analysts cited by France 24.
Democrats won control of both chambers of US Congress in the midterm elections, which added to investor concerns about AI stocks, according to DW. US President Donald Trump attributed Thursday’s stock market freefall to the Democrats’ electoral victory, posting on Truth Social, according to France 24. Trump’s claim about the cause is his own and has not been confirmed by analysts quoted in the sources.
In Asia, Japan’s Nikkei 225 fell 6% on Friday, and South Korea’s Kospi tumbled more than 8%, according to the Guardian. Samsung Electronics plunged nearly 10% and SK Hynix slid over 11% in Asian trading, per DW.
In Europe, the pan-European STOXX 600 wiped out its gains for the week in early trading on Friday, with most major European markets falling more than 1%, according to DW. The FTSE 100 was down 1.9% in mid-morning trading, and Germany’s Dax fell 1.9%, according to the Guardian.
The size of some Friday falls differs between sources. DW reported the Nikkei fell 5.5% in early trade, while the Guardian reported a 6% drop on the day. France 24 reported the STOXX 600 down 1% at 09:19 GMT, while DW reported it down 1.6% in early trading. The figures were recorded at different times and may both be accurate.
Data-centre regulation was not on most midterm ballots and was not among the top issues for most voters, according to France 24, though hardline stances against data centres were in many candidates’ platforms. Democratic governors-elect in several states, including Texas, Ohio, Georgia, Nevada and Iowa, campaigned on slowing AI development or pausing data-centre construction amid public opposition, according to DW and France 24.
Jefferies economist Mohit Kumar said he did not believe the selloff marked the start of an unwind of the AI trade, arguing Democrats would be reluctant to give up AI investment that creates jobs, according to the Guardian.
Analyst Susannah Streeter expects volatility to persist until at least January, when more clarity on Democrats’ AI policy may emerge, according to France 24. Chris Beauchamp warned there is a risk of more selling, according to the Guardian.
Several gaps remain. No response from Democratic leaders or incoming officials to the claims that they would curb AI data-centre spending was included, and no official Democratic policy or legislation on AI or data centres is cited; the fears rest on campaign stances and analyst views. The Alaska and Mississippi Senate races were undecided at the time of reporting, so final Senate numbers are unconfirmed. No company response was included on the Samsung, SK Hynix, SanDisk or Western Digital declines.
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This article was written with AI assistance from the published reporting listed above. It is part of the World Brief daily news podcast.