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%, on track for the worst decline since April 2025 tariffs. 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 S&P 500 sectors. Global markets also suffered, with South Korea's Kospi down 5.3% and Japan's Nikkei 225 sinking 1.8%. Treasury yields eased to 4.83%, while Brent crude rose 2.6% to $97.11 amid ongoing uncertainty over the Iran war.