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AI Stock Sell-Off Sends S&P 500 Down 4.4%, Its Worst Day Since April 2025
AI stock sell-off sends S&P 500 down 4.4 per cent, its worst day since April 2025.
Key points
- The Dow Jones Industrial Average sank 1,833 points, or 3.4 per cent, on Thursday.
- Canada's main stock index lost 736.13 points, weighed down by losses in the technology sector.
- AppLovin jumped 31 per cent after revenue and profit topped analysts' expectations.
Why it matters. Any slowdown in AI data-centre construction would mean fewer AI chip purchases, and the article says the AI boom is driving much of U.S. economic growth.
AI-linked stocks drove a brutal Wall Street sell-off on Thursday, pushing the S&P 500 down 4.4 per cent and erasing the prior day's gain. The Dow Jones Industrial Average sank 1,833 points, or 3.4 per cent, while the Nasdaq Composite tumbled 5.5 per cent, leaving it 11.9 per cent below its all-time high set last month. Nvidia fell 9.3 per cent, the heaviest drag on the S&P 500, as Democratic midterm wins raised the possibility of data-centre construction pauses.
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AI Stock Sell-Off Sends S&P 500 Down 4.4%, Its Worst Day Since April 2025
AI stocks around the world came under pressure on Thursday as investors worried about possible moratoriums on data centres. The concern followed Democratic victories in the U.S. midterm elections. The S&P 500 fell 4.4%, its worst session since April 2025. That was the market's steepest drop since the sell-off triggered by President Donald Trump's 'Liberation Day' tariffs. The Associated Press reported the decline on Thursday afternoon in New York.