Brutal sell-off for AI stocks sends Wall St reeling

A brutal sell-off swept through Wall Street on Thursday, led by stocks tied to the buildout of AI data centres. The wipeout more than erased the US stock market’s gain from the day before, which was its best in three months. The S&P 500 fell 4.4 percent for its worst day since US President Donald Trump shook markets worldwide in April 2025 with his “Liberation Day” tariffs. The Dow sank 3.4 percent, while the Nasdaq tumbled 5.5 percent. The Nasdaq, which is full of AI-related and other tech stocks, sank 11.9 percent below its all-time high set last month. Stock geeks call a loss of more than 10 percent a “correction.” Stock markets around the world felt pressure from continued drops for companies that had benefited from the boom in the artificial-intelligence technology industry, and South Korea’s Kospi index tumbled 5.3 percent. Such stocks have been swinging for months on worries that the construction of further AI data centres may slow because of how expensive it’s become to borrow money. Critics also said AI stock prices had shot too high and were in a bubble. Tuesday’s US midterm elections added another challenge. The nationwide victories for Democrats raised the possibility that governments could force...