Global AI selloff spreads to Europe after Nasdaq sheds $2.5 trillion
What's new: The Stoxx 600 fell 1% as investors braced for prolonged volatility over US AI policy and data center spending.
A selloff in AI-linked stocks spread into Europe on Friday after the Nasdaq 100 erased about $2.5 trillion in market value and the broader Nasdaq Composite fell 5.5%, deepening a retreat driven by fears of tougher US scrutiny of AI infrastructure. The Philadelphia SE Semiconductor index dropped 12%, while Nvidia lost 9% and Advanced Micro Devices tumbled 17%. In Europe, the Stoxx 600 slipped 1%, with losses broadening beyond technology even as the region’s lower exposure to AI stocks cushioned the blow. Investors are weighing whether Democrats’ control of the US Congress could slow data center construction, a key driver of recent spending, valuations and funding across chipmakers, neocloud firms and hyperscalers such as Amazon and Alphabet.