A wipeout for AI stocks sends Wall Street reeling, and the S&P 500 tumbles more than 3%

NEW YORK (AP) — 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.

The S&P 500 fell 3.2% after opening with a loss that accelerated through the morning. It’s on track for its worst drop since President Donald Trump shook markets worldwide in April 2025 after announcing his “Liberation Day” tariffs.

The Dow Jones Industrial Average was down 1,146 points, or 2.1%, as of 11 a.m. Eastern time, and the Nasdaq composite was 5% lower.

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

Tuesday’s 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’s growth.

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

GE Vernova, which has been helping to power data centers, sank 9.1%.

AI chip stocks are some of Wall Street’s most influential because they’ve become some of the largest. A 1% move for Nvidia, for example, has more effect on the S&P 500 than a 1% move for nearly any other U.S. stock.

Thursday’s 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.

Leading them was AppLovin, which soared 30.2% after the marketing platform reported both revenue and profit that topped analysts’ 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’s total potential value to $3.6 billion.

Tapestry rallied 6.7% 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.

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.

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% to $96.70 and recovered a chunk of its nearly 9% 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.

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

That could be a signal that investors are herding into U.S. Treasury bonds in search of something that’s safer to own than stocks. The drop also came despite some encouraging reports on the U.S. economy.

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’s high inflation.

In stock markets abroad, indexes were mixed in Europe and Asia. Besides South Korea, Japan’s Nikkei 225 also felt the sting of drops for tech and AI-related stocks and sank 1.8%.

London’s FTSE 100 dipped 0.1% after the Bank of England increased its main interest rate for the first time in three years to help limit high inflation.

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.

“We’ve seen encouraging news in the past 48 hours,” Bank Gov. Andrew Bailey said at a press briefing. “The best thing that can happen is to resolve the conflict in the Middle East; there’s no question about it.”

AP Business Writer Elaine Kurtenbach contributed to this report.

FILE - Traders Drew Cohen, left, and Dylan Halvorsan work on the floor of the New York Stock Exchange, Monday, Jan. 26, 2026. (AP Photo/Richard Drew, File)

A television screen on the floor of the New York Stock Exchange displays the rate decision of the Federal Reserve, Wednesday, Oct. 28, 2026, in New York. (AP Photo/Yuki Iwamura)

A TV screen shows President Donald Trump in a news reporting, near the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Thursday, Nov. 5, 2026. (AP Photo/Lee Jin-man)

The curve of the German stock index DAX is displayed at the stock market in Frankfurt, Germany, Wednesday, Nov. 4, 2026. (AP Photo/Michael Probst)

Dealers talk each others near the screens showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Thursday, Nov. 5, 2026. (AP Photo/Lee Jin-man)

The screens showing the Korea Composite Stock Price Index (KOSPI), the foreign exchange rate between U.S. dollar and South Korean won and the Korea Securities Dealers Automated Quotations (KOSDAQ) at a dealing room of Hana Bank in Seoul, South Korea, Thursday, Nov. 5, 2026. (AP Photo/Lee Jin-man)

The screen shows the Korea Composite Stock Price Index (KOSPI) at a dealing room of Hana Bank in Seoul, South Korea, Thursday, Nov. 5, 2026. (AP Photo/Lee Jin-man)

NAVAHERMOSA, Spain (AP) — Spain's national soccer coach and the president of Real Madrid joined the family and teammates of Jesús de Miguel on Thursday at his funeral after the Spanish player died following an on-field collision.

The 30-year-old De Miguel died on Tuesday, a day after he suffered cardiac arrest following a collision with an opposing goalkeeper during a second-division game.

De Miguel's Tenerife teammates traveled from the Canary Islands and were among the hundreds who attended the funeral.

Spain coach Luis de la Fuente, Real Madrid president Florentino Pérez and the president of the Spanish soccer federation were also there.

“It is with deep sorrow and genuine emotion that we offer our condolences and our respect,” De la Fuente told reporters before the service. “It is the best way to show that the soccer community stands united, by sending a very warm embrace to all his loved ones.”

The funeral car draped with floral arrangements arrived slowly to the church in the town of Navahermosa in central Spain. Dozens of people walked behind, with several carrying candles. After the funeral mass, pallbearers carried De Miguel to the local cemetery.

His parents were reportedly born in Navahermosa, less than two hours south of Madrid. The town of some 3,000 inhabitants declared three days of mourning with flags at half mast at the town hall. De Miguel was born in Madrid. He spent his playing career in lower-tier Spanish clubs before helping Tenerife earn promotion to the second division last year.

His family issued a statement thanking all those who expressed their condolences, while also asking for their privacy to be respected.

“We need to mourn with the tranquility that this situation requires,” the family statement read. “Jesús leaves a void that is impossible to fill, but also an immense memory in all of us who were fortunate enough to share our lives with him.”

On Monday, De Miguel was not looking when Andorra goalkeeper Jesús Owono crashed into him while disputing a high ball late in the game. De Miguel collapsed to the turf. Medical workers attended to him for five minutes before carrying him to an ambulance.

Owono has expressed his remorse for the incident and offered his condolences to De Miguel’s family, which includes his wife and 1-year-old daughter.

Spain’s National Police have opened an investigation into possible involuntary manslaughter — a standard procedure for a non-natural death. Investigators are expected to assess whether Owono’s challenge went beyond the normal course of play.

His rare death resulting from an impact in a game has stunned the world of soccer. Messages of condolences poured in from European clubs and tributes were dedicated to De Miguel during this week's Champions League games.

Wilson reported from Barcelona, Spain.

See AP’s full soccer coverage here

The mother of CD Tenerife player Jesús de Miguel, center, who died Tuesday following a collision with Andorra goalkeeper Jesús Owono during a soccer match, attends her son's funeral in Navahermosa, central Spain, Thursday, Nov. 5, 2026. (AP Photo/Andrea Comas)

Mourners carry the coffin of CD Tenerife player Jesús de Miguel, who died Tuesday following a collision with Andorra goalkeeper Jesús Owono during a soccer match, during his funeral in Navahermosa, central Spain, Thursday, Nov. 5, 2026. (AP Photo/Andrea Comas)

Mourners accompany the hearse carrying the remains of CD Tenerife player Jesús de Miguel, who died Tuesday following a collision with Andorra goalkeeper Jesús Owono during a soccer match, at his funeral in Navahermosa, central Spain, Thursday, Nov. 5, 2026. (AP Photo/Andrea Comas)

Mourners accompany the hearse carrying the remains of CD Tenerife player Jesús de Miguel, who died Tuesday following a collision with Andorra goalkeeper Jesús Owono during a soccer match, at his funeral in Navahermosa, central Spain, Thursday, Nov. 5, 2026. (AP Photo/Andrea Comas)

Florentino Pérez arrives for the funeral of CD Tenerife Jesús de Miguel, who died Tuesday following a collision with Andorra goalkeeper Jesús Owono during a soccer match, in Navahermosa, central Spain, Thursday, Nov. 5, 2026. (AP Photo/Andrea Comas)

CD Tenerife players arrive for the funeral of teammate Jesús de Miguel, who died Tuesday following a collision with Andorra goalkeeper Jesús Owono during a soccer match, in Navahermosa, central Spain, Thursday, Nov. 5, 2026. (AP Photo/Andrea Comas)

Luis de la Fuente, center, arrives for the funeral of CD Tenerife Jesús de Miguel, who died Tuesday following a collision with Andorra goalkeeper Jesús Owono during a soccer match, in Navahermosa, central Spain, Thursday, Nov. 5, 2026. (AP Photo/Andrea Comas)

Mourners carry the coffin of CD Tenerife player Jesús de Miguel, who died Tuesday following a collision with Andorra goalkeeper Jesús Owono during a soccer match, during his funeral in Navahermosa, central Spain, Thursday, Nov. 5, 2026. (AP Photo/Andrea Comas)