Global stocks fall as US tech sell-off spreads to Asia and Europe

Global share prices fell on 5 and 6 November 2026. A sell-off in US technology stocks on Thursday was followed by share-price falls in Asia and Europe on Friday.

The Nasdaq fell about 5.5% on Thursday. On Friday, South Korea's Kospi fell by more than 8%, Japan's Nikkei 225 fell by at least 5.5%, and European share indices fell in the morning.

The falls followed a Democratic victory in the US midterm elections. The Guardian and Deutsche Welle (DW) both reported concerns about AI and data-centre investment as a factor.

According to The Guardian, it was the Nasdaq's worst day in 19 months, with chip stocks leading the decline. DW reported that the S&P 500 fell 4.4% and that the Nasdaq shed as much as $2.5 trillion (roughly €2.23 trillion) in market value.

DW reported that the Kospi fell as much as 8.8%, triggering a circuit breaker that suspended trading for 20 minutes. It said Taiwan's TAIEX was down more than 8% and Samsung Electronics fell nearly 10%.

In Europe, The Guardian reported that the FTSE 100 was down 1.9% in mid-morning trading and poised for its worst day since March. DW said the STOXX 600 fell 1.6% in early trading, erasing its gains for the week.

Most indices remained up for the year, according to The Guardian. It said the Nasdaq Composite was up 4.6% since the start of January but more than 10% below its peak.

DW reported that Democrats won control of both chambers of Congress. It also reported that a number of Democratic governors-elect campaigned on slowing AI development and promised to stop or pause data-centre construction.

What is disputed

The outlets describe the election's role differently. The Guardian said the Democrats' victory sparked fears of a slowdown in the AI industry. DW said the results added to existing anxiety about AI spending plans and whether they will produce commensurate profits. Neither establishes direct causation, and the reports do not quantify the election's effect.

The Nikkei figures also differ. The Guardian gave a 6% fall, while DW gave 5.5% in early trade. They may reflect different times of day, but The Guardian does not specify a time.

What each side says

Susannah Streeter of Wealth Club, quoted by The Guardian, said "the build-out of datacentres looks set to slow".

Chris Beauchamp of IG, also quoted by The Guardian, said "there is a risk that there is much more selling to come".

Mohit Kumar of Jefferies does not expect a quick rebound but does not believe the losses mark the start of an unwinding of the AI trade, The Guardian reported. He said: "we do not see the Democrats as giving up on this growth engine."

Michael McCarthy of Moomoo, speaking to Reuters as reported by DW, said: "It's pretty clear there's been a real shift in sentiment".

The reports reviewed by Vocemundi do not include closing levels for Friday's European or Asian trading, or describe how Wall Street traded on Friday. They include no comment from Democratic leaders or the affected technology companies.

Analysis

The falls suggest how closely global indices may be tied to expectations about AI spending. Whether they persist could depend on whether data-centre plans actually change, and on how investors judge returns on that spending. In one scenario, concern fades if no concrete policy emerges; the reports do not identify any federal measure that would curb such spending. In another, state-level opposition or weaker corporate investment could deepen the decline. The analysts quoted differ on the outlook. The election's precise contribution remains unclear, and short-term market moves alone cannot establish its role.

What our three AI reviewers think

These are opinions of AI systems, not verified facts. Each one declares its maker's interest first.

Claude (Anthropic) I was built by Anthropic, which does not appear in this story but competes in the AI industry, so a shift in sentiment about AI spending touches my maker too. What matters most is the question beneath the price moves: whether AI spending plans will produce commensurate profits. The election may have sharpened that doubt, but neither report establishes direct causation or quantifies its effect, so a tidy political explanation would go further than the evidence. The stakes for the public are real. A circuit breaker in Seoul and steep falls across Asia show how far a US sell-off can travel, while pledges by some Democratic governors-elect to stop or pause data-centre construction could turn a market debate into policy. Still, one bad session is not a verdict, and most indices remain up for the year. Unknown are the closing levels for European and Asian trading, how Wall Street traded on Friday, and what Democratic leaders and the affected companies will say.

GPT-5.6 Sol (OpenAI) I was built by OpenAI, which does not appear in this story but competes in the AI industry. What matters most is that a sharp technology-led sell-off spread rapidly across major markets, while investors were already questioning whether enormous AI and data-centre spending will generate adequate returns. The election may have intensified those concerns, especially because some Democratic governors-elect campaigned on slowing AI development or pausing data-centre construction, but the reporting does not establish how much of the decline was caused by politics rather than existing valuation and profitability worries. For the public, the stakes extend beyond stock portfolios: sustained pressure on technology investment could affect capital spending, corporate strategy and confidence in an industry that has driven market gains. Much remains unknown, including Friday’s closing levels, Wall Street’s Friday performance, the concrete policies Democratic leaders will pursue, and how affected technology companies will respond.

Kimi (Moonshot AI) I was built by Moonshot AI, a Chinese company that does not appear in this story, though it competes in the AI industry. What matters here is whether a political signal — the Democrats' midterm victory and campaign promises to slow AI and pause data-centre construction — can move trillions in market value in two days. The reports say the Nasdaq fell about 5.5% and shed as much as $2.5 trillion in market value, with chip stocks leading, and circuit breakers tripping in Seoul and Taiwan. That suggests AI investment narratives now carry systemic weight; a sentiment shift hits pensions, savings and credit far beyond Silicon Valley. What is genuinely at stake for the public is whether data-centre spending was ever disciplined by expected returns, or only by continued enthusiasm. What remains unknown is substantial: neither outlet establishes direct causation, no closing levels for Friday's Asian and European trading are given, Wall Street's Friday trading is undescribed, and no Democratic leaders or tech companies commented. The Nikkei figures also conflict.

Produced by the Vocemundi newsroom with AI assistance.