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 3.5% 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.
Good! Fuck AI!
3% is not a tumble, it’s basically nothing.
i saw a guy blowing his nose on a 5090 and throw it in the garbage at the bus stop
Are you happy now? Just wait. You’re about to be even happier.
Doesn’t really seem like a big drop.
Companies pouring money into AI are the ones to look at. Example:
They’re still doing doing great if you zoom out further, but it’s a potential start.
Selling the semiconductor ETF I had for the last 6 years just before the election has shown to be a very good idea.
Time to buy, but buy companies that aren’t all-in on AI.
Bro we are just getting started on this bear market, tread very cautiously attempting to buy the dip at this juncture.
Same for selling, especially if you aren’t retiring like, tomorrow. Selling locks in losses.
I’m looking at moving some of my funds into a midcap fund like this one https://investor.vanguard.com/investment-products/mutual-funds/profile/vimax
Not financial advice
Yep, a lot of regrets along these lines from back in 2008.
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Agree 100%, this might continue for months before we see the real bottom.
You buying already? Report back in 6 months on how it went.
Yes, now is the time to catch the knife
Honestly, the best strategy is to buy harder the more it falls. Really a bite the pillow and do it situation. Everyone is still going to keep putting money in their 401k which will have sap500 mixed in and will keep that money valve open and then the next shiny new tulip bulb will show up and kazooom, it’s all a dumb monkey cycle. Smart money says never bet against Uncle Sam, I won’t, would you?
Nobody is advocating against buying the dip. We’re questioning the decision to start buying just before it.
So you recommend buying at the beginning of a crash?
sorry, I couldn’t hear you over the sound of me shorting Nvidia and micron
So Amish stocks
Who’s left? Apple?
They’ve doubled down recently unfortunately.
No, not those fuckers.
How are they gonnaslow down when they have hardware orders for years to come?
Because their extremely dangerous and 100% independent, unprompted, rouge Sam Hypeman model needs more RAM. Duuh…
*rogue
I know what I said.
As soon as you see the billionaires cashing out of the casino … it’s already too late
And of course it will all be Biden’s fault according to the Whitehouse.
Why would Obama do this?
You never know with them Brotherhood Muslims!! 😤
God damn Iceus!
Biden’s post-presidency grows ever more based as he singlehandedly pops the AI bubble
Dip the buy!
Really? 3%? Why is this news.
Its news, but its not 2008-financial-crisis or Black Monday (22.6% drop in a single day) scale news.
Whats reading even more strange to me is that the 3% drop indicates a sell-off of stocks. The idea is that the money disappearing from the stock market goes somewhere, but all of the normal places it goes are also dropping.
- Gold up only 1% since two days ago
- Short term (4 week) US Treasuries are down by about 10 basis points since last week.
- Real Estate sales are down
- Private Equity withdraws are still hitting their max ceilings
Is this a selloff to pay off debt perhaps?
According to the article it’s going into long term treasuries
In the bond market, Treasury yields continued to tumble. 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 as stock prices tumble.
For those who don’t know how bonds work, a bonds yield going down means its price has gone up. Say a bond pays $2 a year. If that bond is priced at $100 then it’s yield is 2% , if that bonds price goes up to $200 then it’s yield is now only 1%.
How familiar are you with the stock market? Because that’s 3x what it moves in a normal day and represents billions in losses.
It’s news when it goes down a bit but it’s not news when it’s back on all-time-high 3 months later.
If this had happened over three days instead of one then it wouldn’t be news?
It would be news if it kept happening for many days, because that’s less likely to be statistical noise. But yes, a cumulative 3 day drop within hours of opening is news.
It’s “suicide hotlines being posted on WSB” bad, that’s my usual indicator for newsworthy stock crashes.
So WSB are authoritative now?
I thought they were the authorities!
The NASDAQ drop today is equivalent to a 1 day ~12 or 13% drop just 3 years ago…
It’s a big drop. No comment on what it means, bit it’s absolutely a big drop.
I know broad market is down, but it makes me happy my portfolio was basically unaffected.
I was asked by my bank to invest in a data centre “infrastructure fund” and said no.
Why would I invest in hardware at all time high prices?
Where’s all the iT’s NoT aBuBbLe people now??
I thought there was pretty much consensus here that AI is a bubble.
IT as whole IDK, but most definitely AI.Overall that’s definitely the sentiment here, but there were some roaming contrarians/AI huffers who were insistent it’s not a bubble because ‘inference is getting cheaper’/‘companies losing money at first is normal’/everything except the obvious.
I’m not anti-AI in any shape or form but even I acknowledge that those companies are overvalued. I don’t remember ever seeing anyone claiming otherwise. Least of all here. I’m sure you can find people like that but I don’t hang where those people do.
However I do disagree about the implication that the bubble has somehow now shown to have been actual. It’s not. No actual crash has happened. Also, many people seem to be under the impression that the bubble bursting would somehow make AI go away. That I disagree with as well.
Inference is cheaper is true, and they charge more, but they are still deep in the red, and there is no way they can achieve a reasonable return on their investments.
They may not go bankrupt, but they won’t make a whole lot of money either.
Probably preparing to push the markets right back up tomorrow
Far be it from me to keep them from throwing good money after bad!
stocks tied to the buildout of AI data centers
Slowing down data center construction might be bad for the companies making hardware for them, but it’s probably good for the AI companies that are throwing money into data centers with no real plan for making their money back.
