Global tech stocks plunge as US midterms add to AI slowdown fears

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on BBC News or enjoy below:

🗞️ Driving the news: Global stock markets have plunged following a major technology sell-off triggered by concerns that US midterm results could slow artificial intelligence development and data centre expansion
• The Nasdaq fell 5.5% on Thursday, while the downturn spread across Asia and Europe, wiping trillions of dollars from major technology companies' valuations

🔭 The context: Democratic victories in the US midterms have strengthened political opposition to rapid data centre expansion and raised expectations of tighter AI regulation
• Investors are also questioning whether enormous AI infrastructure investments will generate sufficient returns
• The seven largest US technology companies collectively lost approximately $1 trillion in market value in one trading session, while Nvidia shares dropped more than 9%

🌍 Why it matters for the planet: The growing backlash against data centres reflects concerns about their environmental footprint, including electricity consumption, infrastructure development and pressure on local resources
• Potential restrictions could influence the pace and location of AI infrastructure deployment, although the article does not quantify any resulting emissions reductions

⏭️ What’s next: Investors are poised to monitor whether Democrats pursue a national data centre moratorium or additional regulatory restrictions
• Technology companies may face growing pressure to demonstrate economic benefits and secure community support for infrastructure projects, while markets continue reassessing AI investment profitability

💬 One quote: “The AI story has all been about speed, and now there is a danger of it moving to a lower gear, and some of the wheels falling off,” - Dan Coatsworth, head of markets at AJ Bell

📈 One stat: The estimated market value erased from the Nasdaq during Thursday's sell-off was $2.5 trillion, as the index entered correction territory

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