AI stock rout hits Wall Street as data center moratorium fears grow
Wall Street suffered a major selloff Thursday as AI-related stocks plunged, with the S&P 500 falling 3.2% and the Nasdaq dropping 5%, triggered by fears that Democratic midterm victories could lead to data center construction moratoriums. Nvidia fell 8.3%, AMD tumbled 15.9%, and CoreWeave dropped 14.9%, while the Dow lost 1,146 points. The losses erased Wednesday's gains and marked the worst day since President Trump's April 2025 tariff announcement, with South Korea's Kospi also sinking 5.3%. Despite the rout, about two-fifths of S&P 500 stocks rose, led by AppLovin's 30.2% surge on strong earnings. Treasury yields eased to 4.84%, and Brent crude rose 2.2% to $96.70, while global markets showed mixed results amid ongoing uncertainty over the Iran war and interest rates.