More drops for Nvidia and other AI chip stocks erase Wall Street's rally from the day before

U.S. stocks fell on Thursday as renewed selling in AI chip names wiped out Wall Street’s previous-day rally. The S&P 500 dropped 1.8% to erase all gains from the day before, which had been its best in three months, while the Nasdaq composite fell 3% and the Dow slid 403 points. AI-related stocks worldwide were pressured by concerns that Tuesday’s U.S. midterm elections could trigger moratoriums on some data center construction, alongside worries about the high cost of borrowing for new capacity. Nvidia fell 4.1%, AMD dropped 10.7%, and CoreWeave slid 6.8%.