AI stock selloff hits Wall Street, S&P 500 drops 3.5%

A wipeout for AI-related stocks sent Wall Street reeling Thursday, with the S&P 500 falling 3.5% and erasing all gains from the prior day's best session in three months. The Dow dropped 1,433 points, and the Nasdaq fell 4.7%. The selloff was driven by concerns that expensive borrowing costs and Democratic victories in Tuesday's midterm elections could slow AI data center construction. Nvidia fell 7.5%, AMD tumbled 14.6%, and CoreWeave dropped 12.1%, with losses broad across all sectors. Treasury yields eased to 4.83%, while Brent crude rose 2.6% to $97.11. Global markets also suffered, with South Korea's Kospi down 5.3% and Japan's Nikkei 225 falling 1.8%.