AI Rout Sends US Stocks Sliding, Nvidia Crashes 16%

The market opened under pressure as the

AI rout

accelerated sell‑offs across technology‑heavy indices. Nasdaq Composite slipped ↓ 2.3% while the S&P 500 recorded a modest 1.1% dip.

Market Reaction to AI Rout

Leading the descent, AI‑infrastructure stocks posted double‑digit retreats; Nvidia tumbled ↓ 16% after a Reuters report linked the slide to heightened competition from China’s DeepSeek. Analysts note that the broader AI sector, which surged during the recent pandemic rebound, now faces pricing pressure and supply‑chain constraints.

“The correction reflects a rapid reassessment of growth forecasts,” a senior trader observed.