Summary
- The S&P 500 fell 4.36% to 7,353.73, well below its 52-week high of 7,844.52.
- The Nasdaq Composite dropped 5.52% to 24,314.998, its steepest decline among major indexes.
- ING is reportedly shopping roughly $500 million of data-center loans tied to 12 projects.
The broad market retreat accelerated Thursday after a report that ING is seeking buyers for approximately $500 million in loans tied to a dozen data-center projects, including debt connected to a Stargate site in New Mexico. The disclosure fed a growing unease over how the artificial-intelligence infrastructure boom is being financed, adding to a string of warning signs that have unsettled investors in recent sessions.
The S&P 500 closed at 7,353.73, down 4.36% from its previous close of 7,688.62. The Nasdaq Composite, heavily weighted toward technology and AI-linked names, fell 5.52% to 24,314.998, pulling it further from its 52-week high of 27,722.75. The Dow Jones Industrial Average slid 3.44% to 51,523.06, retreating from a 52-week peak of 54,744.33.
Thursday's rout followed a similar pattern seen elsewhere, with Canadian futures also sliding on spillover from the same AI-related anxiety. The common thread tying the moves together is a reassessment of how data-center buildouts — financed heavily through debt — are being valued as demand assumptions and customer commitments face new scrutiny.
The ING situation adds a tangible data point to concerns that had largely been theoretical: that lenders behind the AI infrastructure wave may be looking to offload exposure rather than hold it. Separately, a neocloud operator said this week that billions in expected annualized revenue would be pushed into next year at a customer's request, reinforcing doubts about the pace and certainty of AI-related cash flows.
Markets had already been trading near record territory, leaving little room for disappointment. With the S&P 500 and Nasdaq both now sitting well off their 52-week highs after Thursday's drop, investors are likely to watch closely for further signs of credit stress tied to AI financing, along with Friday's October jobs report, as they reassess risk heading into year-end.