ANALYSTS AND INVESTORS REACT TO AI MARKET ROUT

What happened: Global stock markets fell as investors reacted to a Democratic sweep in the midterm elections, fearing regulation and a slowdown of the AI boom that has driven US growth and computer component supply chain stocks. Key numbers: Nasdaq fell 5.5 per cent on Thursday, its biggest drop since the 2025 "Liberation Day" rout. Why it matters: Analysts cited high valuations and expectations that the US data centre rollout will be scaled back, with some seeing a possible turning point for the US market while others cautioned the selling reflects panic and positioning.

Global stock markets fell as investors reacted to a Democratic sweep in the midterm elections, fearing regulation and a slowdown of the AI boom that has driven US growth and computer component supply chain stocks.

Analysts cited high valuations and expectations that the US data centre rollout will be scaled back, with some seeing a possible turning point for the US market while others cautioned the selling reflects panic and positioning.