FinanceCNABrutal sell-off for AI stocks sends Wall Street reeling
Wall Street had its worst day since Trump's April tariff shock, with AI stocks leading a massive sell-off after US midterm election results raised fears of tighter data centre regulation.
The nationwide victories for the Democrats have raised the possibility that governments could force pauses in the construction of more data centres.
A brutal sell-off hit Wall Street on Thursday, with AI and tech stocks leading the biggest single-day fall since Trump's Liberation Day tariffs in April 2025.
The S&P 500 fell 4.4 per cent, the Nasdaq tumbled 5.5 per cent, and Nvidia alone dropped 9.3 per cent, dragging heavily on the broader index.
Democrat wins in the US midterms raised fears of tighter AI regulation and slower data centre construction, which could dampen the AI spending boom driving much of US growth.
If you hold superannuation or shares in tech or AI-linked funds, this sell-off pushed the Nasdaq more than 10% below its recent record high, which is officially a market correction.
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