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

Another wipeout for stocks tied to the buildout of AI data centres overwhelmed Wall Street on Thursday and more than erased all its gains from the day before, which was its best in three months. The S&P 500 fell 3.5 per cent 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.