AI stock selloff triggers 3.5% S&P 500 drop, Dow loses 1,433 points

Wall Street suffered a major selloff Thursday as AI-related stocks plunged, with the S&P 500 falling 3.5% and erasing the previous day's gains. The Dow dropped 1,433 points, while the Nasdaq fell 4.7%. Nvidia dropped 7.5%, AMD tumbled 14.6%, and CoreWeave fell 12.1%, with losses hitting every sector. The selloff was driven by concerns over high borrowing costs and Tuesday's Democratic midterm victories, which raised the possibility of government pauses on data center construction. Treasury yields eased to 4.83%, while Brent crude rose 2.6% to $97.11. Global markets also fell, with South Korea's Kospi down 5.3% and Japan's Nikkei 225 sinking 1.8%.