US tech stocks and major global markets experienced a partial recovery in early trading following a steep global sell-off triggered by concerns over a slowdown in artificial intelligence development.
The market turbulence followed the US midterm elections, won by Democrats, where proposed restrictions on power-hungry data centres became a key issue for voters. The political shift compounded existing investor anxieties about whether massive expenditures on artificial intelligence will yield returns, leading to trillions of dollars being wiped off tech firms worldwide on Thursday.
During Thursday's session, the tech-heavy Nasdaq index tumbled by 5.5%, while chipmakers like AMD and Micron dropped by more than 17%. International markets also suffered, with Japan's Nikkei 225 falling 6.3% and South Korea's Kospi index triggering a circuit breaker after plunging over 8%.
US President Donald Trump voiced support for the sector on social media, writing that only "foolish leadership" would turn down the economic benefits of artificial intelligence, as investors continue to monitor regulatory developments and the broader trajectory of the tech industry.
