Investors moved into bonds as stocks fell across Europe and Asia on concerns about AI regulation and the cost of AI infrastructure. The Nasdaq dropped 5.5% on Thursday, wiping $2.5 trillion from its value, while Taiwan’s index fell 12.2% for the week.
Stocks fell in Europe and Asia on Friday as investors continued to worry that the Democrats’ US midterm election win could lead to tougher rules for AI data centres. Japan’s Nikkei and South Korea’s KOSPI each slumped about 6%, while Taiwan’s index plunged more than 8% at one point before recovering some losses.
Government bonds rallied as investors sought safety. The US 10-year Treasury yield was at 4.84%, near its lowest level since September 9. Yields on 10-year Japanese government bonds fell as much as 9 basis points to 1.795%, while German 10-year yields dipped to 3.22%.
The Nasdaq fell 5.5% on Thursday, wiping $2.5 trillion from its value, while $3 trillion was erased from S&P 500 companies. Investors are concerned that data-centre and other infrastructure costs could limit future returns from AI. Taiwan’s market ended the week down 12.2%, its biggest weekly fall since 1991, and SoftBank slid 11% in Japan.
