Stock market sell-off: Dow plunges 1,800 points and FTSE falls as AI shares crash. What it means for your pension

Updated 6 Nov 2026, 12:55 · First published 6 Nov 2026

Stock markets around the world have been hit by a huge sell-off in artificial intelligence and tech shares. On Wall Street the Dow Jones fell more than 1,800 points on Thursday, and this morning the FTSE 100 dropped about 1.5% as the rout spread to Europe.

Why are the markets falling?

The biggest losers are the AI and chip companies that have driven markets higher all year, such as Nvidia, AMD and Micron. Big investors have been cashing in their profits, and there are new worries in the US after the midterm elections, where the Democrats won control of both houses of Congress. Investors fear stricter rules could slow the building of huge AI data centres. Shares in Tesla and SpaceX fell more than 9%.

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What does it mean for my pension or ISA?

If you have a workplace pension or a stocks and shares ISA, its value has probably dipped this week, especially if it tracks global or US shares, which are heavy in big tech companies. But pensions are long-term investments. Financial experts generally advise not to panic-sell after a sharp fall, because markets have historically recovered over time, and selling now would lock in the losses. If you are close to retirement or worried, speak to your pension provider or a regulated financial adviser.

What about cash savings?

Money in a savings account or a cash ISA is not affected by share prices. And with the Bank of England raising interest rates to 4% on Thursday, savers should be getting slightly better rates. It is a good time to check whether your bank is paying you a competitive rate.

Is the UK economy in trouble?

Not directly. The sell-off is mainly about US tech shares, and the FTSE 100 has fewer tech companies than Wall Street. But falling markets can hit confidence, and investors are also watching oil prices, with Brent crude near $98 a barrel because of tensions around Iran.

This article is general information, not financial advice. Energy Radio is not a financial adviser.

Sources: Yahoo Finance, Investing.com, Bloomberg. Figures as of Thursday close and Friday morning.