AI spending doubts trigger Wall Street selloff as Nasdaq falls 5%

Wall Street sold off sharply on Thursday as the Nasdaq Composite fell 5.2%, pushing it more than 10% below its October 6 record close and into correction territory. The S&P 500 dropped 3.4% and the Dow 2.2%. Semiconductor stocks led losses, with the Philadelphia Semiconductor Index down 11%, as investors questioned returns on massive AI infrastructure spending and weighed midterm election results.