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A steep sell-off in US technology stocks spilled into markets in Asia, Europe and the UK, with the Nasdaq falling 5.5% and the S&P 500 down 4.4% in the previous session, according to the source report. Investors are weighing questions about the scale of AI investment and whether political opposition to data centres could slow development; the report does not establish that election results caused the market decline.
A sharp sell-off in US technology stocks sent losses across global markets, with the Nasdaq dropping 5.5% and the S&P 500 falling 4.4% in the previous session, according to This Is Money. US shares rose at the next opening bell, but the rebound did not erase earlier declines in Asia, Europe and London as investors reassessed AI-related valuations and the prospects for further data-centre investment.
The report said the Nasdaq had fallen as much as 6.4% in early trading before closing 5.5% lower. The S&P 500 lost 4.36%, and the Dow Jones Industrial Average declined 3.44%. The Nasdaq and S&P figures are rounded in some parts of the report; they refer to the session before the subsequent US market open, when the Nasdaq rose 1.32% and the S&P gained 0.36%.
Losses in prominent technology and semiconductor shares included drops of 8% for Nvidia, nearly 15% for Advanced Micro Devices, 14% for Micron Technology and 17% for SanDisk. Tesla fell 11%, while SpaceX fell 9%, the report said. The sell-off followed a period of major investment in AI infrastructure and concerns that share valuations had run ahead of evidence that the spending will produce returns.
The declines were not confined to the United States. Japan’s Nikkei 225 fell 6% overnight, its steepest one-day decline since April 2025, while South Korean and Taiwanese markets fell more than 8% at the open. London’s FTSE 100 was down more than 200 points, or 1.96%, at 10,571 in the report’s cited trading, after reaching 10,948 on Thursday. Germany’s Dax fell 2.2% and France’s Cac 1.76%.
How the Sell-Off Reaches Investors
The global spread of the losses matters because many pension funds, savings plans and investment funds hold US shares directly or through indexes such as the Nasdaq and S&P 500. A fall in heavily weighted technology companies can lower the value of those indexes, affecting investors even if they do not own individual tech stocks. The report said about £2 trillion was wiped off the Nasdaq’s value during the cited Thursday sell-off; it did not specify the calculation method or period beyond that session.
The drop also highlights the concentration of market gains and losses in a relatively small group of large technology and semiconductor companies. Quilter portfolio manager Stuart Clark said weakness in those companies can translate quickly into larger index declines because they carry substantial weight. That exposure can transmit volatility beyond technology-focused portfolios, particularly if investor concern broadens to the global economic outlook.
For households, a market decline can reduce the value shown in investment and pension accounts, especially where holdings track US indexes. The report cited the impact on savings pots but did not quantify losses for individual investors. Short-term market moves do not determine long-term outcomes, and the available information does not establish whether the sell-off will continue or reverse.
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Election Concerns and AI Spending
The market decline followed US midterm election results and a brief relief rally immediately after the vote, according to the report. It said traders were concerned that the Democrats’ victory could strengthen opposition to data centres and slow AI infrastructure projects. That is presented as a market concern, not as evidence that projects have been cancelled or that policy has changed.
Technology companies have committed billions of dollars to AI infrastructure, while investors have pushed up the share prices of companies seen as potential beneficiaries. The recent sell-off reflects questions about whether the spending will generate returns sufficient to justify those valuations. The report does not provide company-level forecasts or evidence establishing that an AI market bubble has formed.
US President Donald Trump attributed the market fall to the election result in posts on Truth Social, blaming Democratic voters. That was his claim; the report provides no independent evidence that the election caused the losses. It also notes that the FTSE 100, despite its limited direct exposure to technology shares, fell amid wider concerns because its multinational companies depend on global economic conditions.
“Market rebounds can happen quickly and those sitting on the sidelines often miss the best days.”
— Dan Coatsworth, head of markets at AJ Bell
Causes and Market Direction Remain Unsettled
The report links the sell-off to investor concerns about AI spending and possible political resistance to data centres, but it does not establish a single cause for the declines. Trump’s assertion that the election drove the fall is unverified in the material. It is also unclear whether opposition to data-centre development will lead to specific policy action or changes to company investment plans.
The next US session opened higher for the Nasdaq and S&P 500, but the report described futures as mixed, with further falls anticipated for the Dow and S&P and a small rise expected for the Nasdaq. Futures are indicators of expected trading, not final market results. The source does not give a consistent timestamp for every international index figure, and the reported prices should be understood as snapshots rather than current live quotes.
Investors’ longer-term concerns also remain open: whether AI-related infrastructure spending will generate adequate returns, whether company earnings will support current valuations, and whether losses will spread to a wider range of sectors. The figures supplied do not resolve those questions.
Markets Await Earnings and Policy Signals
Near-term attention is likely to remain on trading in US technology and semiconductor shares, and on whether the opening gains in the Nasdaq and S&P 500 hold in subsequent sessions. The mixed futures picture cited in the report points to uncertainty rather than a settled recovery. Further market movement will show whether the falls remain concentrated in large technology names or broaden across sectors and regions.
Investors will also look for evidence about the returns from AI infrastructure spending and for concrete policy developments affecting data centres. The report does not identify a specific upcoming policy decision or corporate announcement that would settle those questions. Until further information emerges, the causes and duration of the volatility remain uncertain.
Key Questions
Which markets fell in the sell-off?
According to This Is Money, the Nasdaq fell 5.5%, the S&P 500 dropped 4.36% and the Dow Jones declined 3.44% in the US session described. The report also recorded losses in Asian and European markets, including a 6% fall in Japan’s Nikkei 225 and a 1.96% decline in London’s FTSE 100 in the cited trading.
Did the midterm election cause the market decline?
The report said traders worried that the result could lead to greater opposition to data-centre development and affect AI investment. Trump blamed Democratic election gains, but that is his claim; the material does not establish the election as the cause of the sell-off.
Why did technology stocks come under pressure?
Investors were questioning the billions being spent on AI infrastructure and whether future returns will justify the valuations of technology companies. The report describes those concerns but does not prove that an AI bubble has formed.
Could the decline affect pension and savings accounts?
It could affect accounts invested in US shares or funds that track indexes such as the Nasdaq and S&P 500. The impact on any individual account depends on its holdings, and the report does not quantify losses for particular savers.
Did US markets recover at the next opening?
The report said the Nasdaq rose 1.32% and the S&P 500 gained 0.36% at the next opening bell after the steep prior-session losses. Those opening moves did not reverse the global losses already recorded, and they do not establish what happened over the full subsequent session.
Source: thisismoney.co.uk
