AI stock sell-off drives S&P 500 down 4.4% in worst day since April 2025

Wall Street suffered a severe sell-off Thursday, led by AI-related stocks, with the S&P 500 falling 4.4% in its worst day since April 2025. The Dow dropped 1,833 points, and the Nasdaq tumbled 5.5%, entering correction territory. The decline was driven by fears that AI data center construction could slow due to high borrowing costs and election results raising the possibility of government pauses. Nvidia fell 9.3%, while Advanced Micro Devices dropped 17.3%, with losses spreading globally. Treasury yields fell as investors sought safety, and oil prices rose 3.9%. Some companies like AppLovin and Tapestry gained on strong earnings, while European and Asian markets were mixed.