AI-Led Tech Selloff Rattles Global Markets as the BoE Raises Rates to 4%

A post-midterm selloff in AI and tech shares erased trillions in value and spread to Asia and Europe, before a partial Nasdaq rebound on Friday. The Bank of England raised rates to 4% while Middle East tensions kept oil in focus.

Maz Vantage · 8 Nov 2026

Wall Street: an AI-led selloff, then a partial rebound

Technology shares were at the centre of a sharp market move this week. According to the BBC, a rout that began in the US on Thursday wiped trillions of dollars off stock values, with the Nasdaq Composite falling 5.5% before recovering 1.1% on Friday. The S&P 500 closed up 0.3% on Friday, while the Dow Jones Industrial Average ended down 0.4%. The Guardian's editorial described Thursday as Wall Street's worst day since the pandemic.

The BBC links the selloff to the Democrats' sweeping gains in the US midterm elections, which gave the party full control of Congress. Some leading Democrats campaigned against the unhindered expansion of data centres, and investors appear worried about more AI regulation. The same report notes that doubts about whether the AI boom can deliver the expected returns had been growing for some time, with AI investment expected to reach $1 trillion in 2026, according to Goldman Sachs research cited there.

Individual names moved sharply. Nasdaq-hosted commentary reports that AMD shares dropped around 17% on Nov. 5 to close at $404.40, and another piece notes Broadcom fell 9% in a single day. Not all corporate news was negative for the sector: Alphabet's $15 billion investment in Malaysian data centres is cited as a sign that AI infrastructure spending continues.

US data, the Fed and the political backdrop

The BBC reports that the latest US employment figures showed an unexpectedly strong 165,000 jobs added in September, adding to a mixed picture for markets. The Federal Reserve last issued an FOMC statement on 28 October; its next scheduled items in the central bank's release feed are routine supervisory announcements.

On the political side, a Guardian column argues that voters' concern over the cost of living drove the election result, and that the Democrats have limited room to ease price pressures over the next couple of years. A Nasdaq-hosted commentary notes that inflation and bond yields remain elevated.

Asia and Europe

The selloff spread beyond the US. The BBC reports that South Korea's Kospi closed down 6% on Friday, with chipmaker SK Hynix falling more than 10%, and that the main indexes in Germany, France and Spain also ended lower. Elsewhere in Asia, Investing.com reports that China's energy investment is set to reach $940 billion in 2026 as grid spending rises.

In Europe, the Bank of England raised Bank Rate to 4% on 5 November. The BBC says it was the first rise in over three years, with eight of nine committee members voting for the increase and one preferring 4.25%. Governor Andrew Bailey said further moves depend on progress towards settling the Middle East conflict, which has pushed up oil prices. The move matters beyond the UK because it shows energy-driven inflation still shaping central-bank decisions. Meanwhile, the European Central Bank published a wage tracker suggesting slightly higher wage growth in the first three quarters of 2027 than across 2026.

Oil, geopolitics and crypto

Energy markets remain tied to the Middle East. Investing.com reports that Saudi Arabia lifted alerts in its oil region after a Houthi missile was intercepted, and that the US military said it disabled a cargo vessel in the Gulf of Oman. In crypto, Bitcoin is holding below $76,000 as closures at Binance in the EU add to market pressure.

What to watch

Investors are weighing whether the tech selloff reflects a lasting repricing of AI-related risk or a short-term reaction to the election result, while energy prices and the Middle East conflict continue to shape the inflation and interest-rate outlook.

Sources

Wall Street: an AI-led selloff, then a partial rebound

US data, the Fed and the political backdrop

Asia and Europe

Oil, geopolitics and crypto