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AI Rout Triggers Sharp Sell‑off: Nasdaq Slides, Nvidia Crashes 16%

Dispatch by Elara Vance | Updated: 21:24 GMT+0000 / Jul 05, 2026 | 1 MIN READ
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The U.S. equity arena witnessed a broad sell‑off on Tuesday as an emerging AI rout, ignited by concerns over China’s DeepSeek, rattled high‑tech names.

AI Rout Sends U.S. Stocks Tumbling

The Nasdaq Composite led the decline, slipping into the red while makers of AI infrastructure recorded double‑digit losses. Nvidia, the sector’s bellwether, fell ↓ 16% after its latest earnings miss.

“Investors are re‑evaluating exposure to AI hardware amid heightened risk,” said a market analyst.

The market’s reaction was swift and severe, underscoring the fragility of AI‑driven valuations. For a detailed breakdown see Reuters.


Words by Elara Vance (Night-Shift Breaking News Lead).

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