European shares fall as AI sell-off spreads after US midterms
What's new: Strategists flagged volatility into January as investors weigh whether a Democratic Congress will curb AI data center spending.
European stocks fell Friday as a global sell-off in artificial intelligence shares spread beyond Wall Street, with investors reassessing valuations and policy risks after Democrats won control of the US Congress. The Stoxx 600 dropped 1% to 648.83 points, erasing its weekly gains, though it held up better than Asian and US markets because Europe has less exposure to big AI names. Traders have focused on whether a Democratic-led Congress could slow AI data center spending, adding to worries about debt-heavy investment and weaker returns. Even so, some investors bought the dip in US tech, with Nasdaq 100 futures recovering most of an early 2.4% drop as analysts pointed to oversold positioning and still-solid cloud demand at Amazon Web Services and Microsoft Azure.