AI stock rout sends S&P 500 down 3.9% as Wall Street selloff deepens

Wall Street suffered a severe selloff Thursday as AI-related stocks plunged, with the S&P 500 falling 3.9 percent and the Nasdaq entering correction territory, more than erasing the previous day's gains. The drop was driven by concerns over slowing AI data centre construction due to high borrowing costs and potential government pauses following Democratic victories in Tuesday's U.S. midterm elections. Nvidia fell 8.7 percent, while Advanced Micro Devices tumbled 15.5 percent, with losses broad across all sectors. South Korea's Kospi index dropped 5.3 percent, and Japan's Nikkei 225 sank 1.8 percent. Treasury yields eased to 4.83 percent, while Brent crude oil rose 3.6 percent to $98.03 per barrel amid ongoing uncertainty over the Iran war.