AI rout Sends Nasdaq and Nvidia Tumbling Amid DeepSeek Shock

AI rout drags US equities lower

The broad AI rout sparked by China’s DeepSeek announcement sent the Nasdaq tumbling ↓ 2.3%, while chip‑maker Nvidia slumped ↓ 16% in single‑digit minutes. Investors scrambled for safety as AI‑related infrastructure names recorded double‑digit losses across the board. Reuters reported that the sell‑off extended to broader tech indices, erasing gains accrued since the start of the quarter.

“The market reaction underscores the fragility of AI hype when a single foreign entrant reshapes expectations,” said a senior analyst at Bloomberg.

The episode arrives amid heightened geopolitical tension, where even nuclear policy debates are influencing risk appetite. Traders now eye the upcoming earnings season for clues on whether the correction is temporary or a prelude to deeper volatility.

Intel provided by: Zara Blackwood

Rapid Response Intelligence Analyst