AI Rout Triggers Sharp Stock Decline Across U.S. Markets

AI Rout Sends Nasdaq Tumbling

The AI rout that began after China’s DeepSeek announcement has rippled through U.S. equities, pulling the Nasdaq down ↓ 2.5% in early trade. Heavyweights in AI infrastructure posted double‑digit losses; Nvidia, the sector bellwether, slid ↓ 16% after reporting weaker-than‑expected guidance.

“The market reaction underscores lingering uncertainty around AI supply chains,” a Reuters analyst noted.

Investors are recalibrating exposure to firms that supply GPUs, data‑center chips, and cloud services. Risk‑averse capital is rotating toward traditional sectors, while Bloomberg highlights that the broader S&P 500 remains marginally positive.

Dispatch from Arthur Sterling (Macroeconomics Editor).