Global stocks fall on AI and US election worries

Unbranded stock ticker display on a quiet trading floor as global markets fall, with DXY in focus

Key Points

01Global stocks declined as AI spending fears and US midterm risk weighed on markets
02Prediction markets put the chance of Democrats sweeping Congress at about 77%
03Key benchmarks including STOXX 600, KOSPI and Taiwan’s index posted notable losses
04The dollar index (DXY) eased near a one-month low while 10-year US yields edged higher

AI and US election worries spark global stock sell-off

Global equity markets fell on November 3, 2026, as renewed concerns over artificial intelligence spending combined with uncertainty around the US midterm elections. Investors sold shares across regions while monitoring the prospect that the vote could reshape regulatory risks for technology and AI-related businesses. The weakness added to recent pressure on Big Tech stocks, which have faced disappointment over earnings and heavy capital expenditure plans.

Traders on prediction platform Polymarket assigned about a 77% probability to Democrats winning both the House of Representatives and the Senate. That scenario focused attention on the possibility of tougher oversight of AI systems and data centres, as well as broader corporate regulation. Market participants viewed the election outcome and the scale of AI investment as twin sources of uncertainty for future technology sector profitability.

Sharp moves across major regional indices

The sell-off was evident across key regional benchmarks. In Europe, the pan-European STOXX 600 index dropped 0.6% to 645.36 points.

At the global level, MSCI’s gauge of stocks across the world slipped 0.26%.

The S&P 500 index (USSPX500:N) itself had already fallen for three consecutive sessions heading into the trading day. Investors weighed lacklustre results from large technology companies and steep AI-related investment plans that have unsettled sentiment. Forecasts from major firms, including an iPhone maker’s outlook, contributed to concerns that earnings may not keep pace with spending.

Currencies, bonds and cross-asset signals

Moves in equities were accompanied by notable shifts in currency and bond markets. The dollar index (DXY), which tracks the US currency against a basket of peers, dipped to 101.69 after reaching a one-month low on Monday.

In US fixed income, the yield on the 10-year Treasury note rose 1.2 basis points to 4.9064%.

Oil prices rose even as equity benchmarks retreated, highlighting a mixed cross-asset picture.

Key Takeaways

01Market moves reflected a broad risk-off tone centred on technology, as investors questioned whether heavy AI capital spending would be justified by future earnings.
02Election pricing, with a 77% implied chance of a Democratic sweep, pulled regulatory risk for AI and data centres into sharper focus for equity investors.
03The combination of falling global stocks, a softer dollar index (DXY) and rising US 10-year yields signalled shifting expectations for policy and growth across asset classes.

References