Global stocks slide as Democrats' US election victory raises fears of AI spending crackdown

The Jerusalem Post · REUTERS · 2026-11-06 11:22 UTC

Fears that a Democrat-led Congress could seek curbs on AI data-centre spending added to concerns over weak returns, lofty valuations and debt-fueled investment.

European shares opened lower on Friday, with losses across the board as a global market rout gathered steam, capping a painful week as investors grappled with uncertainty over AI stocks after Democrats took control of the US Congress.

The pan-European STOXX 600 index dropped 1.6% to 644.72 points by 0810 GMT, with benchmarks in most major regional markets also lower by more than 1% each. Friday's losses wiped out its gains for the week, and it is down about 0.2%.

The STOXX 600 index was relatively less impacted this week than its Asian and Wall Street peers, given the European index's smaller exposure to AI stocks.

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