Global tech stocks suffer bloodbath as US midterms fuel AI fears

Global technology stocks fell sharply on Friday as investors assessed the risk that US midterm results could bring greater resistance to artificial intelligence projects. Dawn reported that Tokyo’s Nikkei 225 and Seoul’s Kospi each closed 6.0pc lower, after the Nasdaq dropped 5.5pc on Thursday, its steepest decline since April last year. European markets also weakened, with London, Paris and Frankfurt down around 2pc during the session.

Investor concerns included whether opposition to data-centre construction could slow investment in AI infrastructure and reduce the prospects for returns on substantial spending. Analysts also pointed to higher borrowing costs and the financial pressure this could place on smaller firms. The Philadelphia Semiconductor Index was down around 16pc for the week, while chipmakers in Asia including SK hynix, Samsung and TSMC also recorded losses.