Global stocks plunge amid AI slowdown fears after Democrats’ midterm triumph

Sell-off on Wall Street followed by sharp fall in Asian and European markets, with FTSE down 1.5%

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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.