European stocks sink on AI data-centre fears after Democrats’ US midterm sweep rattles Thursday Nasdaq
European shares tumbled on Friday as investors digested a global sell-off in AI-linked stocks after Democrats’ sweeping US midterm wins and their takeover of Congress. The slide followed Thursday’s tech-led rout, when the Nasdaq posted its worst percentage session since April 2025 on fears that a Democrat-led Congress could curb the AI data-centre boom. Those facilities are widely unpopular with US voters, and the worry added to existing concerns over weak returns, lofty valuations and debt-fuelled investment.
Data-centre rules were not on most midterm ballots and were not a top issue for most voters, but hardline opposition to server warehouses featured in many campaigns. That included Democrats who flipped long-held Republican governorships in Texas, Ohio, Georgia, Nevada and Iowa — states dense with such warehouses. Senate races in Alaska and Mississippi remained unsettled, so Democrats could still add seats.
President Donald Trump blamed Thursday’s crash on his rival party’s Tuesday gains, posting on Truth Social after US markets closed: “The Stock Market crashed today because the Dumocrats had a big Tuesday - So sad to see, you only have yourselves to blame!” Before the European open, EURO STOXX 50 futures were down 1 percent at 6:52 GMT, with German and UK contracts off 0.8 percent and 0.9 percent, capping a painful week of AI-stock uncertainty.
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