Global stock markets fell Thursday as investors sold shares linked to artificial intelligence, amid concerns about data centre investment and potential construction restrictions following Democratic victories in U.S. midterm elections. The declines reversed the previous day’s gains on Wall Street, where technology companies were among the biggest contributors to losses.
The S&P 500 dropped 4.4 per cent, its largest daily decline since April 2025. The Dow Jones Industrial Average fell 3.4 per cent, while the Nasdaq Composite lost 5.5 per cent. The Nasdaq closed 11.9 per cent below its recent peak, putting it in what investors commonly call correction territory.
Canada’s main stock index fell 736.13 points to 35,605.27, while South Korea’s Kospi declined 5.3 per cent. The Canadian dollar eased to 71.48 U.S. cents. Concerns about borrowing costs and elevated valuations had already contributed to volatility in companies benefiting from spending on AI infrastructure in the months ahead of elections.
Investors are assessing whether election results could increase the likelihood of pauses in data centre construction. The report cited voter concerns about AI and electricity bills. Reduced construction could affect demand for chips, power and related services. Nvidia fell 9.3 per cent, while Advanced Micro Devices dropped 17.3 per cent.
CoreWeave declined 9.8 per cent, and GE Vernova lost 7.5 per cent. Some companies moved higher following earnings reports. AppLovin rose 31 per cent after exceeding revenue and profit expectations and expanding its share buyback programme. Tapestry gained 7.1 per cent after reporting stronger earnings and raising its annual forecasts.
Brent crude rose 3.9 per cent to US$98.29 a barrel, recovering part of the previous day’s decline. Meanwhile, the yield on 10-year U.S. Treasury bonds fell to 4.84 per cent from 4.90 per cent. The report suggested falling yields could reflect investors seeking relatively safer assets as stock markets declined.