European shares fall as US chip sell-off spreads across markets
US semiconductor stocks suffered their biggest daily decline since 2020 amid concerns about restrictions on data centre construction.
The Stoxx Europe 600 fell 1.2 per cent at the opening of trading on 6 November 2026, following sharp losses in US and Asian markets. France’s CAC 40 and London’s FTSE 100 each lost 1.4 per cent after trading began.
Investors were weighing whether sweeping Democratic victories in the US midterm elections could bring tighter restrictions on new data centres. Many winning candidates had promised to curb or stop construction, adding to concerns about returns on the hundreds of billions companies have invested in artificial intelligence.
Market intelligence company Cleanview estimates that about 40 per cent of planned US data centre capacity is located in states whose governors or governors-elect have either promised a pause on new projects or imposed one already. Higher borrowing costs have also prompted questions about the pace of construction.
The Philadelphia Semiconductor Index lost 12.2 per cent in the preceding US session, its sharpest daily drop since 2020. The Nasdaq Composite declined 5.5 per cent, while the S&P 500 shed 4.4 per cent and the Dow Jones Industrial Average fell 3.4 per cent.
Asian markets also recorded steep declines. Japan’s Nikkei 225 and South Korea’s Kospi each fell 6 per cent, while Taiwan’s Taiex finished 4.5 per cent lower. Shares in Taiwanese chipmaker TSMC dropped as much as 8.5 per cent during trading.
