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apnews.com

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.

  • partial_accumen@lemmy.world
    23·
    4 days ago

    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?

    • Not_mikey@lemmy.dbzer0.com
      9·
      4 days ago

      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%.