Wall Street suffers worst day since April as AI stocks crash, ASX set to fall

Wall Street suffered its worst day since April 2025, with the S&P 500 plunging 4.4 per cent as AI-related stocks crashed, erasing the previous day's gains and setting up the Australian sharemarket for losses. The Dow fell over 1,800 points and the Nasdaq tumbled 5.5 per cent, led by Nvidia dropping 9.3 per cent and AMD falling 17.3 per cent. Democratic midterm victories raised fears of government moratoriums on data centre construction, while high borrowing costs added pressure. Australian futures pointed to a 0.5 per cent drop at the open, following Thursday's 2.6 per cent rally. Brent crude rose 2.6 per cent to $US97.11, while the 10-year Treasury yield fell to 4.83 per cent.