US stock markets had one of their roughest sessions of the year on Thursday, as a sell-off that began in technology shares spread across the market.
The Nasdaq Composite fell about 6.4% and the S&P 500 dropped about 4.4%, while Canada's main index, the TSX, lost around 2%. The VIX, a widely watched gauge of expected volatility often called Wall Street's "fear index", jumped by roughly 70%.
Analysts at ATB Wealth linked the slide to investor concern that the Democratic sweep in the midterm elections could bring new risks for companies spending heavily on AI infrastructure. Money moved into government bonds, which are seen as safer.
Markets recovered a little on Friday, with the S&P 500 ending the week slightly higher on the day. Market analysts at Equity Clock cautioned that it may take time for confidence to return after such a sharp fall.