S&P 500 drops 4.4% in steepest slide since April

The U.S. stock market erased its recent gains Thursday as investors sold off technology shares. The sell-off was driven by companies building artificial intelligence infrastructure. The S&P 500 index fell 4.4%, marking its worst single-day drop since the April 2025 tariff announcement.

This decline reversed the market's best performance in three months, which occurred on Wednesday. The Dow Jones Industrial Average dropped 1,833 points, a 3.4% loss. The Nasdaq composite fell 5.5%, a larger percentage drop that reflects the heavy weighting of tech firms in that index.

The Nasdaq now sits 11.9% below its all-time high set last month. The sharp correction follows a period of strong gains in AI-related sectors. The drop suggests that investors are reassessing the valuation of these high-growth companies.

Paraguayan President Santiago Peña faces a criminal investigation following the collapse of Ueno Bank. Prosecutors announced the probe hours after the lower house voted 78-0 to impeach him on Thursday. The Senate is currently debating whether to remove him from office.

The banking crisis has turned the Colorado Party against its long-time leader. Peña, a former IMF economist, had been a key ally of the Trump administration in Washington. His removal would leave the South American nation without a sitting president during a financial shock.

In Washington, President Donald Trump met with a Russian envoy at the White House on Thursday. The meeting took place while first lady Melania Trump hosted a separate event on the same premises. Trump suggested a grand deal on European security is in the works but did not meet with visiting Ukrainian officials.

The White House encounter occurred as Trump continues to pressure Ukrainian President Volodymyr Zelenskyy for concessions. In the closing weeks of the midterm election campaign, Trump reached a deal with Russian President Vladimir Putin to lift sanctions on Russian diesel exports.

Los Angeles voters elected Nithya Raman, a Democratic socialist and City Council member, to replace Mayor Karen Bass. Raman's victory signals a shift in local governance that mirrors recent trends in other major cities. She will take office next month, joining a growing group of progressive leaders in municipal government.

Florida executed Jesse Guardado in Starke at 6:13 p.m. Thursday, tying the state's record for executions in a single year. Guardado had pleaded guilty to the 2004 stabbing of 75-year-old Jackie Malone. Indiana executed a man earlier in the day, and Alabama scheduled a third execution for later Thursday evening.

Senate Democratic Leader Chuck Schumer stated that Democrats will not confirm a right-wing Supreme Court nominee once they take control of the chamber. In an interview, Schumer said the party will block what he called "crappy nominees" from the Supreme Court, lower courts, and the Cabinet. He did not specify if they would hold a vacancy open until after the next presidential election.

Court documents unsealed Thursday reveal that the Trump administration held secret talks with Iran on deporting Iranians during the ongoing war. The documents indicate the administration planned to deport Iranians through an unnamed third country as recently as mid-October. A judge ordered the government to provide 24-hour notice of finalized deportation plans and five days' written notice before execution.

California Governor Gavin Newsom announced he will commute more than 500 death sentences to life in prison without parole. Newsom stated that state-sanctioned killing is incompatible with California's values. The state Supreme Court will have the final say in hundreds of these cases. Newsom, who placed a moratorium on executions in 2019, is preparing to leave office after eight years and is considering a presidential run.