Tech stocks suffer bloodbath as US midterms fuel AI fears

LONDON, United Kingdom (AFP) — Technology shares plunged Friday after an unnerving rout on Wall Street as fears grew that Democrats would accelerate a backlash against AI after their crushing defeat of President Donald Trump’s Republicans in the US midterms.

The Tokyo and Seoul stock markets closed out their weeks with losses of six percent following the Nasdaq’s 5.5 percent collapse on Thursday, its worst showing since April last year when Trump unveiled his wide-ranging global tariffs.

“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,” said Susannah Streeter, chief investment strategist at Wealth Club.