Global Markets Plummet Amid AI Fears

Global markets saw sharp declines as investor fears over potential government restrictions on artificial intelligence triggered a massive sell-off in the tech sector.

A sharp rout swept through global stock markets at the end of the week, as fears over the political implications for the artificial intelligence sector triggered mass sell-offs of tech stocks. According to reports by NBC News and Jutarnji list, the Nasdaq index recorded its largest daily drop in 19 months, officially entering technical correction territory. The negative trend, which originated on Wall Street, spread rapidly to markets in Asia and Europe.

The decline was driven largely by a slump in chip manufacturer stocks, amid investor concerns that incoming lawmakers might restrict investments in data infrastructure dedicated to artificial intelligence. U.S. President Donald Trump addressed the developments, attributing the market turmoil to the Democratic Party's midterm election victory. Further details have not yet been released.