FinanceCBC

AI stock sell-off sends the S&P 500 down 4.4% in worst day since April 2025

Wall Street had its worst day since Trump's Liberation Day tariffs, with the S&P 500 falling 4.4% as AI stocks were hammered after the US midterm results.

AI stocks worldwide felt pressure as worries rise about possible moratoriums on data centres following Democratic victories in the U.S. midterm elections.

The Long Sip
What happened

A savage sell-off on Wall Street wiped out the previous day's gains, with AI and chip stocks leading the falls after the US midterm elections.

The detail

Nvidia fell 9.3 per cent and Advanced Micro Devices tumbled 17.3 per cent, with the Nasdaq now more than 10 per cent below its all-time high.

What it means

Democratic wins raised the prospect of forced pauses on data centre construction, which would reduce demand for AI chips and slow a key driver of US economic growth.

For you

Nvidia is now down 2.6% for the year after losing 9.3% in a single day, so anyone with super or shares in tech-heavy funds may want to check their exposure.

Full story at CBC

What readers are saying

moira1954
It is a massive concern that voter frustration over rising power bills and the sheer amount of electricity these data centres vacuum up is finally impacting the share market. If governments do force a pause on construction to protect the grid it will have a huge flow-on effect for the rest of the economy.
boris57
Market corrections are inevitable when AI chip stocks become this overvalued.
GlenelgNaveen
Investors looking for a safer harbour should watch the 10-year Treasury yields which are falling as people move away from volatile tech stocks. Moving into bonds is a standard fail-safe when the primary growth engine of the market starts to stall like this.
tomt
Everyone is panicking about the tech wreck but AppLovin jumping 31 per cent shows there is still money to be made if a company actually hits its profit targets and buys back its own stock. The same goes for the Coach and Kate Spade brands doing well because it proves people are still spending on high-end retail even while the big AI players like Nvidia are taking a massive haircut.
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