Major tech stocks plunge as US midterms add to fears of AI slowdown

Hundreds of billions of dollars in market value has been wiped from major tech firms in the US and Asia in a stock market rout after the US midterm elections sparked concerns of a slowdown in artificial intelligence development.

Shares in firms across the tech and AI sectors plummeted following Democratic wins after election campaigns run on slowing AI.

The tech-heavy Nasdaq composite index closed down by more than 5.5%, losing an estimated $2.5tn (£1.9tn) in market value, according to Dow Jones data, while other key US stock indexes also saw big losses in their worst days since 2025.

The sell-off comes on top of broader concerns about whether the huge amounts being spent on AI will pay off.