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Global Markets Slide As AI Investment Concerns Trigger $2.5 Trillion US Sell-Off

Investors are reassessing the profitability of massive data centre investments by technology companies such as Meta, Amazon and Google

Photo by Austin Hervias / Unsplash

Global stock markets fell on Friday after a technology-led sell-off wiped approximately $2.5 trillion from US markets. According to CNN, concerns that a Democratic-controlled Congress could slow artificial intelligence infrastructure spending triggered losses across Asia and Europe.

South Korea’s Kospi and Japan’s Nikkei 225 each closed 6% lower, while Taiwan’s Taiex declined 4.5%. Europe’s Stoxx 600 fell 1.1%, with Germany’s DAX and France’s CAC 40 also recording losses.

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Investors are reassessing the profitability of massive data centre investments by technology companies such as Meta, Amazon and Google. Democratic victories in the US midterm elections have raised concerns about tighter scrutiny of data centre projects over their environmental and community impact.

However, analysts expect demand for computing power and semiconductor chips to remain strong. US stock futures showed some recovery on Friday, with Nvidia and SpaceX also rebounding in premarket trading.

Market uncertainty is expected to persist until the incoming Congress takes office in January.

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