AI Rout Drives Stocks Sink as DeepSeek Triggers Market Shock

AI rout fuels broad market sell‑off

The AI rout sparked by China’s DeepSeek model has pulled U.S. equities lower, with the Nasdaq slipping ↓ 2.3% as AI‑heavy chips and cloud providers tumble. Nvidia plunged ↓ 16%, echoing double‑digit slides across the sector.

“Investors are reassessing exposure after the surprise from DeepSeek,” said a senior analyst at Reuters.

Other AI infrastructure stocks recorded losses in the high teens, widening the decline that began on Tuesday. The broader market rally that had lifted the S&P 500 earlier this week evaporated, leaving traders wary of further volatility. Bloomberg notes that sentiment could stay muted until earnings clarity emerges.