S&P 500 drops 3.2% as AI stocks crash

The S&P 500 index fell 3.2% on Thursday, marking its steepest decline since April 2025. This drop erased all gains from the previous trading day, which had been the market's best performance in three months.

Stocks tied to the construction of AI data centers led the decline. The sell-off overwhelmed Wall Street trading floors. The Dow Jones Industrial Average lost 1,146 points, a 2.1% drop, as of 11 a.m. Eastern time. The Nasdaq composite index, which holds many technology firms, fell 5%.

The market reaction follows a volatile week for investors. On Wednesday, the market posted its strongest single-day gain in three months. Thursday's session reversed that momentum completely. Traders pointed to the performance of companies building out artificial intelligence infrastructure as the primary driver of the loss.

This dip in equity prices occurred alongside other major economic news. In Washington, The Associated Press reported on a poll of roughly 100,000 midterm voters. The survey indicated that many voters blamed President Donald Trump’s economic policies for rising inflation. These findings contributed to a set of losses for Republicans in House, Senate, and gubernatorial races.

In Europe, more than 600,000 people rallied in France to demand higher wages and school funding. The Interior Ministry reported these figures were provisional. Demonstrations took place in Paris, Lyon, Marseille, and other cities. Most protests were peaceful after a month of recurring strikes.

In New York, President Trump’s legal team appeared before a state appeals court. They argued to overturn his hush money conviction. The conviction covers 34 felony counts of falsifying business records. The president did not attend the session. His lawyers seek to unwind the verdict, which he has publicly criticized since its original rendering.

In London, actor Russell Brand was convicted of rape and sexual assault involving four women. Judge Joel Bennathan stated Brand faces a prison term. The judge rejected a bail request, citing the possibility of flight. Brand was taken into custody pending sentencing on Monday.