Wall Street loses $3.2 trillion as AI stocks plunge after US midterms

Wall Street lost about $3.2 trillion on Tuesday as AI‑linked stocks plunged following the US midterm elections. The S&P 500 dropped 4.4%, its worst fall since President Donald Trump’s “Liberation Day” tariffs in April 2025, wiping out the previous day’s three‑month gain. The Dow Jones fell more than 1,800 points and the Nasdaq slid 5.5%. AI concerns deepened as Democrats swept the midterms, raising the prospect of a moratorium on new data‑centre builds. Nvidia slid 9.3% after a 3.2% fall the day before, while Advanced Micro Devices tumbled 17.3% and CoreWeave fell 9.8%. GE Vernova sank 7.5%. Every S&P sector lost ground, but AppLovin surged 31% after beating revenue and profit forecasts and announcing a buyback of up to $3.2 billion, raising the program’s total potential to $3.6 billion. Tapestry rose 7.1% on strong earnings and higher guidance. Futures point to a 0.5% (49‑point) drop for the ASX at open, though the index had jumped 2.6% on Thursday after the midterms, while the Australian dollar slipped to US69.52¢. South Korea’s Kospi fell 5.3% and Japan’s Nikkei 225 dropped 1.8%. Brent crude rose 2.6% to $97.11 a barrel, easing a near‑9% fall. The 10‑year Treasury yield fell to 4.83% from 4.90%, signaling a shift toward safer bonds.## Context The sell‑off reflects growing worries that political moves could curb the rapid expansion of AI data centres, which have been a major driver of recent market gains across tech and related sectors.