{"id":13922,"date":"2026-11-05T17:26:50","date_gmt":"2026-11-05T17:26:50","guid":{"rendered":"https:\/\/sotnews.agency\/?p=13922"},"modified":"2026-11-05T17:26:50","modified_gmt":"2026-11-05T17:26:50","slug":"ai-chip-stocks-drag-wall-street-toward-worst-day-since-trumps-tariff-announcements-in-2025","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=13922","title":{"rendered":"AI chip stocks drag Wall Street toward worst day since Trump’s tariff announcements in 2025"},"content":{"rendered":"
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A screen displays stock market information after the closing bell at the New York Stock Exchange (NYSE) in New York City, Wednesday. Reuters-Yonhap<\/p>\n<\/figcaption><\/figure>\n

NEW YORK \u2014 Another wipeout for stocks tied to the buildout of AI data centers is overwhelming Wall Street on Thursday and more than erasing all its gains from the day before, which was its best in three months.<\/p>\n

The S&P 500 fell 3.2 percent after opening with a loss that accelerated through the morning. It\u2019s on track for its worst drop since President Donald Trump shook markets worldwide in April 2025 after announcing his \u201cLiberation Day\u201d tariffs.<\/p>\n

The Dow Jones Industrial Average was down 1,146 points, or 2.1 percent, as of 11 a.m. Eastern time, and the Nasdaq composite was 5 percent lower.<\/p>\n

Stock markets worldwide felt pressure from continued drops for companies that benefited from the boom for the artificial-intelligence technology industry, and South Korea\u2019s Kospi index tumbled 5.3 percent. Such stocks have been swinging for months on worries that the construction of further AI data centers may slow because of how expensive it\u2019s become to borrow money .<\/p>\n

Tuesday\u2019s U.S. midterm elections added another challenge. The nationwide victories by Democrats raised the possibility that governments could force pauses in construction of more data centers. That would mean fewer purchases of AI chips, not to mention electricity and other products and services that are getting vacuumed up in the AI frenzy and driving much of the U.S. economy\u2019s growth .<\/p>\n

Nvidia fell 8.3 percent and was by far the heaviest weight on the S&P 500, a day after dropping 3.2 percent. Advanced Micro Devices tumbled 15.9 percent. CoreWeave, a company that rents access to AI chips to customers over the cloud, fell 14.9 percent.<\/p>\n

GE Vernova, which has been helping to power data centers, sank 9.1 percent.<\/p>\n

AI chip stocks are some of Wall Street\u2019s most influential because they\u2019ve become some of the largest. A 1 percent move for Nvidia, for example, has more effect on the S&P 500 than a 1 percent move for nearly any other U.S. stock.<\/p>\n

Thursday\u2019s drop for AI-related stocks drowned out gains elsewhere in the market, and roughly two out of every five stocks within the S&P 500 rose.<\/p>\n

Leading them was AppLovin, which soared 30.2 percent after the marketing platform reported both revenue and profit that topped analysts\u2019 expectations. It also approved a program to send up to $3.2 billion to its investors by buying back its own stock, bringing the program\u2019s total potential value to $3.6 billion.<\/p>\n

Tapestry rallied 6.7 percent after the company behind the Coach and Kate Spade brands likewise delivered a stronger profit than expected. It also raised its forecasts for revenue and earnings this fiscal year.<\/p>\n

Stock prices tend to follow where corporate profits and interest rates go over the long term, depending on them much more than on who controls what in Washington.<\/p>\n

In other financial markets, the initial knee-jerk reaction to the U.S. midterm election results faded a bit. The price of a barrel of Brent crude oil rose 2.2 percent to $96.70 and recovered a chunk of its nearly 9 percent drop from the day before. Uncertainty still reigns about what will happen in the war with Iran and when the global energy industry can return to normal.<\/p>\n

In the bond market, Treasury yields continued to ease. The yield on the 10-year Treasury fell to 4.84 percent from 4.90 percent late Wednesday. It had been at 4.95 percent on election night and above 5.30 percent last month.<\/p>\n

That could be a signal that investors are herding into U.S. Treasury bonds in search of something that\u2019s safer to own than stocks. The drop also came despite some encouraging reports on the U.S. economy.<\/p>\n

Fewer U.S. workers applied for unemployment benefits last week. A separate report, meanwhile, suggested overall productivity for U.S. workers improved by more during the summer than economists expected. That could help the economy grow without adding pressure to the nation\u2019s high inflation.<\/p>\n

In stock markets abroad, indexes were mixed in Europe and Asia. Besides South Korea, Japan\u2019s Nikkei 225 also felt the sting of drops for tech and AI-related stocks and sank 1.8 percent.<\/p>\n

London\u2019s FTSE 100 dipped 0.1 percent after the Bank of England increased its main interest rate for the first time in three years to help limit high inflation.<\/p>\n

The bank said its next moves on interest rates largely hinge on what happens with the Iran war , which sent oil prices and inflation higher worldwide.<\/p>\n

\u201cWe\u2019ve seen encouraging news in the past 48 hours,\u201d Bank Gov. Andrew Bailey said at a press briefing. \u201cThe best thing that can happen is to resolve the conflict in the Middle East; there\u2019s no question about it.\u201d <\/p>\n

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A screen displays stock market information after the closing bell at the New York Stock Exchange (NYSE) in New York City, Wednesday. Reuters-Yonhap NEW YORK \u2014 Another wipeout for stocks tied to the buildout of AI data centers is overwhelming Wall Street on Thursday and more than erasing all its gains from the day before,…<\/p>\n","protected":false},"author":1,"featured_media":13923,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_templately_pack_id":"","_templately_imported_at":"","_templately_source":"","_templately_import_session_id":"","footnotes":""},"categories":[16,14],"tags":[],"class_list":["post-13922","post","type-post","status-publish","format-standard","has-post-thumbnail","category-korea","category-trending-news"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t