The AEX index on the Damrak started Friday sharply lower as tech and semiconductor stocks globally came under intense pressure from a wave of selling in AI-related equities. Investors dumped holdings across the sector amid mounting fears of regulatory and political pushback against artificial intelligence.
The market rout comes amid widespread expectations that US Democrats, following their landslide victory in the congressional elections, will introduce stringent regulations for the AI industry. Public opposition to the rapid expansion of AI data centres emerged as a key issue for American voters, with several victorious candidates pledging to curb new developments.
Amsterdam’s benchmark index dropped 1% to 1,117.86 points in morning trading, with almost all 30 constituents in the red. However, semiconductor specialists ASML, Besi, and ASMI staged a partial recovery after steep early losses. The Dutch chipmakers had already shed more than 7% the previous day following a heavy sell-off in the US tech sector; ASML and Besi managed gains of 0.6% and 0.9% respectively, while ASMI dipped 0.1%.
The MidCap index dropped 0.7% to 1,106.17 points, while European peers in Frankfurt, London, and Paris recorded losses of up to 1.4%.
Asian markets suffered far deeper hits, with stock indices in Tokyo and Seoul plunging 6% as key semiconductor players, including Tokyo Electron and Samsung, tumbled. Both the Japanese and South Korean markets had previously climbed to record highs earlier this year on the back of the global AI boom.
The market downturn extended well beyond tech. Universal Music Group (UMG), oilfield services firm SBM Offshore, and energy giant Shell anchored the bottom of the AEX, all posting declines of around 2%.
Conversely, Air France-KLM extended its rally in the MidCap, adding 3.5%. The Franco-Dutch airline group had surged over 12% on Thursday following well-received quarterly earnings and the announcement of substantial job cuts at KLM. Advanced Metallurgy Group (AMG) also gained 1.1% after posting higher third-quarter revenue and profit, prompting an upgraded full-year outlook.
Among small-cap stocks, offshore foundation manufacturer Sif plummeted nearly 24% following disappointing quarterly results. Having warned last summer that the offshore wind sector is weathering its worst crisis in 25 years, Sif confirmed on Friday that it remains in talks with lenders, government officials, and key shareholders over short-term financing solutions.
@anp | NEWS BRAINPORT
