Wall Street’s AI Sell-Off Exposes a Weak Spot in the Bank of Mom and Dad

As more adult children count on the Bank of Mom and Dad to help them buy homes, Mom and Dad, in turn, may be counting on Wall Street.That arrangement looked a little less secure on Friday, when fears about the cost of the artificial intelligence boom sent stocks tumbling.The Nasdaq lost 2.9% on Oct. 30, its worst day since June, as investors grew worried about the billions of dollars companies are spending on AI. Intel shares plunged 28.6%, while chipmakers AMD and Nvidia fell 10.9% and 4.2%, respectively, according to Reuters.The consequences could reach well beyond Wall Street and Silicon Valley. Baby boomers held approximately $35.2 trillion in stocks and mutual funds as of the second quarter of 2026, or roughly 55% of the household total, according to Federal Reserve data analyzed by Yardeni Research.And some of that money is already making its way into their children's down payments. Half of parents who had helped or planned to help their children purchase a home reported drawing on investment accounts, according to an April survey by Veterans United Home Loans.Of course, one bad day won't drain the Bank of Mom and Dad. But if the losses keep piling up, the damage could spill ...