Global Stock Markets Suffer Major Sell-Off as AI Investment Fears Intensify

2026, November 6

United States / Japan / South Korea / United Kingdom / Germany / France / International

Global financial markets experienced a major sell-off as concerns over artificial-intelligence investment valuations spread from Wall Street to Asian and European markets. The Nasdaq plunged 5.5% on Thursday, its worst daily performance in 19 months, while the technology-led decline wiped approximately $2.5 trillion from its market value. On Friday, Japan's Nikkei 225 dropped approximately 6%, while South Korea's Kospi fell more than 8%. European markets also suffered significant losses, with London's FTSE 100 and Germany's DAX both declining around 1.9%.

Investors are increasingly questioning whether enormous spending on AI infrastructure and data centres will generate sufficient returns. Concerns have also intensified following the Democratic Party's midterm election victories in the United States, with investors anticipating tighter oversight of the technology sector. Semiconductor manufacturers and companies heavily exposed to AI infrastructure have been among the worst affected. Despite the sharp correction, most major stock indices remain higher for 2026 overall.