US stock plunge may hit Faroese investments and pensions

The US stock market suffered its biggest fall since April last year on Thursday, with technology companies hit hardest, KVF reports.

The Nasdaq index, which includes many large technology companies, fell 5.5 percent. The market had already been volatile before Americans voted on Tuesday, but the midterm election result accelerated the decline.

Democrats won a majority in Congress, prompting investor concerns that technology companies could face stricter requirements and that rules governing investment in artificial intelligence could tighten. Investors are also uncertain whether large AI investments will generate sufficient returns.

The fall could affect Faroese investment companies and private investors with money in foreign stocks, as well as pension savings invested in international markets.

It remains unclear whether the decline will be temporary or whether share prices will fall further in the coming period.