S&P 500 Drops 3.6% as AI Stocks Tumble

The S&P 500 fell 3.6% Thursday, marking its worst trading day since April 2025. The decline wiped out the U.S. Market's gains from the previous day, which had been its best in three months.

Stocks tied to the construction of artificial intelligence data centers led the market lower. These shares experienced sharp drops that accelerated through the trading session. The broader market struggled to hold onto any early momentum.

The Dow Jones Industrial Average closed down 1,533 points, a drop of 2.9%, with one hour remaining in trading. The Nasdaq composite was 4.5% lower. This index, which holds many technology and AI-related companies, sank 11% below its all-time high set last month.

The market reversal comes after President Donald Trump's administration had previously encouraged AI companies to police their own safety matters. This shift in sentiment contributed to the volatility seen in tech-heavy sectors.

In related news, Senate Democratic leader Chuck Schumer stated that Democrats will not allow President Trump to place a right-winger on the Supreme Court once they take power. In an interview on Thursday, Schumer said his party is not going to allow any crappy nominees to be confirmed to the Supreme Court, lower courts, or Cabinet.

Schumer did not specify if he would hold a Supreme Court vacancy open until after the next presidential election. This approach mirrors the strategy used by former Senate Republican leader Mitch McConnell in 2016. The statement raised the possibility that Democrats could block a presidential nominee if a vacancy occurs in the next two years.

Meanwhile, a female postal worker shot two fellow employees at the main post office in Des Moines, Iowa, on Thursday. Authorities captured the shooter nearby. A third employee was injured in a fall while trying to escape the scene. Des Moines police Sgt. Paul Parizek said all three victims, two women and a man, were in stable condition at the hospital.

The shooting occurred on the facility's second floor in an area not accessible to the public. Witnesses reported hearing 10 to 12 shots. Police said none of the injuries were believed to be life-threatening.

In Tampa, Florida, Hillsborough County Sheriff Chad Chronister announced that a gunman targeted a Citibank office complex over a $2,500 debt collection. Jacob Pearson, 35, drove from Orlando to Tampa, crashing his car through a fence into a courtyard where employees were eating lunch. Pearson killed a woman before being fatally shot by a security guard. Sheriff Chronister said Pearson had threatened violence if a court hearing over the debt was not canceled.

In Washington, court documents showed that the Trump administration held secret talks with Iran on deporting Iranians during the ongoing war. The documents, unsealed Thursday, indicate the administration had plans to deport Iranians through an unnamed third country as recently as mid-October. The judge in the case ordered the government to provide 24-hour notice of any finalized deportation plans and five days' written notice before execution.