AI chip selloff drags US stocks lower, erasing rally

U.S. stocks fell Thursday as AI chip stocks dropped sharply, erasing the previous day's rally. The S&P 500 declined 2 percent, the Dow fell 502 points, and the Nasdaq dropped 3.6 percent. Nvidia fell 6.3 percent, AMD tumbled 13.1 percent, and CoreWeave dropped 10 percent, dragging the market lower despite gains from AppLovin and Tapestry. South Korea's Kospi plunged 5.3 percent, while Treasury yields eased to 4.86 percent. The declines follow concerns about AI data center costs and Tuesday's midterm election results, which raised worries about potential construction pauses. Oil prices rose 2.5 percent to $96.95 per barrel amid ongoing uncertainty over the Iran war.