AI stock sell-off hits Wall Street as Democrats' wins raise data centre concerns

A brutal sell-off on Thursday led by AI data centre stocks erased Wall Street's previous day's gains, with the S&P 500 falling 4.4 per cent in its worst day since April 2025. The Nasdaq tumbled 5.5 per cent, entering correction territory at 11.9 per cent below its record high, while Nvidia fell 9.3 per cent and South Korea's Kospi dropped 5.3 per cent. Democratic victories in Tuesday's midterm elections raised concerns governments could pause data centre construction. Investors also worried about high borrowing costs and a potential AI bubble. The 10-year Treasury yield fell to 4.84 per cent, while Brent crude rose 3.9 per cent to US$98.29 amid ongoing uncertainty over the Iran war.