Global tech stocks wobble over AI regulation fears after midterms | First Thing

Anticipation that Democrats’ ‘blue wave’ will lead to tighter rules on AI and datacenters sends tech stock plunging. Plus a big eight-legged surprise for customs officials in PeruDon’t already get First Thing in your inbox? Sign up hereGood morning. Stock markets around the world have fallen sharply as a rout in US tech stocks spread across the Atlantic after the Democrats’ midterms victory led to fears of a slowdown in the AI industry. A sell-off on Wall Street on Thursday was followed by sharp falls in Asian stock markets on Friday morning. The dip in investor sentiment has also reached London.Susannah Streeter, the chief investment strategist at Wealth Club, said: “The tech sell-off has intensified. Big worries are colliding – the build-out of datacenters looks set to slow, which risks shredding the spending spree underpinning the boom, right at the time that investors have become super nervous about returns on this massive investment.”What happened to the Nasdaq? The Nasdaq share index had its worst day in 19 months after slumping 5.5% on Thursday amid growing signs that the AI industry will face tougher regulation. Continue reading...