S&P 500 drops 4.4% as AI data center stocks tumble after U.S. midterms

A sell-off led by AI data center stocks sent the S&P 500 down 4.4% Thursday, its worst day since April 2025, erasing the previous day's gains. The Nasdaq fell 5.5%, entering correction territory. The decline was driven by concerns that Democratic victories in Tuesday's U.S. midterm elections could lead to moratoriums on data center construction, slowing AI chip purchases. Nvidia fell 9.3%, while Advanced Micro Devices dropped 17.3%, with losses spreading to global markets like South Korea's Kospi. The sell-off follows months of volatility fueled by high borrowing costs and bubble fears. Treasury yields fell to 4.84% as investors sought safety, while oil prices recovered 3.9% amid ongoing uncertainty over the Iran war.