A wipeout for AI stocks sends Wall Street reeling
Wall Street experienced a significant sell-off in AI-related stocks, with the Nasdaq and S&P 500 suffering major losses. Investors are concerned about the high costs of AI data center construction and potential government intervention following recent midterm election results.
Why it matters
The downturn highlights growing market skepticism regarding the sustainability of the AI investment bubble and the impact of political regulation on tech infrastructure.
NEW YORK - A brutal sell-off swept through Wall Street Thursday, led by stocks tied to the buildout of AI data centres. The wipeout more than erased the U.S. stock market’s gain from the day before, which was its best in three months. The S&P 500 fell 4.4 per cent for its worst day since President Donald Trump shook markets worldwide in April 2025 with his “Liberation Day” tariffs. The Dow Jones Industrial Average sank 1,833 points, or 3.4 per cent, while the Nasdaq composite tumbled 5.5 per cent. The Nasdaq, which is full of AI-related and other tech stocks, sank 11.9 per cent below its all-time high set last month.
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