Wall Street's tech-led downturn expanded overseas, dragging down major indexes in Japan, South Korea, and across Europe. European equities faced additional pressure from pharmaceutical, airline, and mining companies during early Friday trading. Investors are increasingly anxious about near-term returns on substantial artificial intelligence capital expenditures. Despite the sharp multi-day losses, prominent global benchmarks like the Nasdaq and FTSE 100 still preserve positive net gains for the year.
Key points
Growing investor skepticism over artificial intelligence investment returns and slowing d…: Growing investor skepticism over artificial intelligence investment returns and slowing data center growth is driving a worldwide market retreat.
The global equity sell-off originated in U.S. chipmakers before pulling down major bourse…: The global equity sell-off originated in U.S. chipmakers before pulling down major bourses across Asia and Continental Europe.
Major market indexes retain net gains for 2026 despite the severe downturn leaving benchm…: Major market indexes retain net gains for 2026 despite the severe downturn leaving benchmarks like the Nasdaq well below recent peaks.
Sources checked by our analysis pipeline: 1
European stock markets have fallen sharply as a rout in US tech stocks spread across the Atlantic, after the Democrats’ midterms victory sparked fears of a slowdown in the AI industry.
A sell-off on Wall Street on Thursday was followed by sharp falls in Asian stocks markets on Friday morning. The investor sentiment then reached London, with the FTSE 100 index, which tracks blue-chip shares listed in London, down 1.5%, or 166 points, at the start of trading to 10,615.
The pharmaceuticals company AstraZeneca opened down 2.8%, the biggest faller on the FTSE 100. Other big fallers included IAG, the owner of British Airways and Iberia, which fell 1.5%, after it missed profit forecasts in a trading update, and the miners Antofagasta and Anglo American.
Germany’s Dax index opened down 1.5%, France’s Cac 40 has dropped by 1.2% and Spain’s Ibex is down 1.1%.
Susannah Streeter, the chief investment strategist at Wealth Club, said: “The tech sell-off has intensified, with the pain of the brutal sell-off on Wall Street carried straight through to Asia and knocking sentiment in Europe.
Sharp price surges over the past 18 months have led marginal investors toward exchange-traded options to bypass expensive physical bullion purchases. Analysts expect sustained upside for bullion driven by lower interest rates, falling crude prices, political shifts, and potential artificial intelligence market downturns. The product offers exposure via fractional units on major bourses, though recent fund gains have trailed wider segment averages.
Global stock drops, recently prompted by falling tech valuations following US midterm elections and expected artificial intelligence slowdowns, directly impact household finances through workplace and private pensions. Hundreds of billions of pounds held in defined contribution schemes fluctuate alongside these financial markets. Consequently, broader market instability can influence everyday job security and retirement income for millions of savers.
Market participants observed a downward shift in the software firm's equity during the current trading session. However, the briefing lacked explanatory context, leaving the precise underlying drivers for the contraction unconfirmed. Investors currently have no stated operational or financial catalysts to account for the price movement.