AI Rout Sends U.S. Stocks Plummeting as Nvidia Slides 16%

In a sweeping AI rout, U.S. equities retreated sharply Tuesday, with the Nasdaq bearing the brunt of the sell‑off.

AI rout triggers market tumble across tech‑heavy indices

Shares of AI‑infrastructure firms slumped, many plunging double digits. Nvidia logged a ↓ 16% decline, while the Nasdaq Composite slipped ↓ 2%. Analysts traced the shock to China’s DeepSeek debut, which reignited concerns over over‑hyped AI valuations.

“The breadth of the decline suggests a reassessment of AI valuation multiples,” a senior trader told Reuters.

Broad market indices echoed the sentiment, with the S&P 500 edging lower. Bloomberg noted that capital inflows into AI funds have stalled, adding pressure to already vulnerable stocks.

Investors also monitor parallel nuclear policy shifts that could reshape risk appetites in the coming weeks.

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