Wall Street Slump: AI Data Center Costs Trigger Major Selloff

Stocks tied to the construction of artificial intelligence data centers led a sharp decline in U.S. equity markets on Thursday. The sell-off weighed heavily on the broader market, dragging down major indices.

The drop in share prices centered on companies involved in the physical buildout of AI infrastructure. Investors reacted to the capital requirements and spending pace of these projects.

The decline was not isolated to a single firm. It swept through multiple stocks in the sector, creating a drag on overall market performance.

This market move occurred alongside other major news in the United States. Los Angeles City Council member Nithya Raman defeated Mayor Karen Bass in the city’s mayoral race.

In Florida, state officials carried out a 19th execution this year, tying the state’s record. A sheriff said a gunman who killed a woman at Citibank’s Tampa office complex targeted the site over a $2,500 debt.

On the federal level, President Donald Trump met with an envoy from Russian President Vladimir Putin at the White House. Trump said he did not meet with Ukrainian officials who were also visiting on Thursday.

Senate Democratic Leader Chuck Schumer stated that Democrats will not allow a right-wing nominee to the Supreme Court if the party holds power. He raised the possibility of blocking a presidential nominee if a vacancy occurs in the next two years.

California Governor Gavin Newsom announced he will convert all 548 death sentences in the state to life in prison without parole.

Court documents revealed that the Trump administration held secret talks with Iran regarding the deportation of Iranians during the current war.

Anthropic said it is developing its AI systems twice as quickly as last year. This pace stands in contrast to calls by CEO Dario Amodei to slow down model capabilities.