The Dow Jones Industrial Average plunged nearly 800 points Thursday as investors continued to panic over AI spending in the tech sector and hopes for an interest-rate cut next month diminished.

The Dow fell 798 points, or 1.7% — its worst day in more than a month after notching a new record high just the day before. The S&P 500 slipped 1.9%, led downward by Disney, which fell 8% after it reported disappointing revenue .

The tech-heavy Nasdaq slipped 2.3% as investors continued to panic over whether AI stocks have been massively overvalued, worsening a sell-off that started last week.

Although the Nasdaq opened strong Thursday, investors quickly pulled back on companies that have been shelling out massive amounts of capital on pricey, power-hungry data centers.

The “Magnificent Se

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