AI Rout Sparks Broad Stock Sell‑off, Nasdaq Leads Decline

AI rout Fuels Market Turmoil

The latest AI rout has ripped through U.S. equities, pulling the Nasdaq into a steep decline as AI‑centric hardware firms posted double‑digit losses. Nvidia slumped ↓ 16% after its earnings missed expectations, while peers such as AMD and Broadcom also retreated. Reuters noted that the sell‑off was ignited by China’s DeepSeek announcement, which heightened concerns over a global oversupply of AI chips.

“Investors are re‑pricing the AI hype cycle after a cascade of disappointing guidance,” said a senior analyst at Bloomberg.

Broader market breadth turned negative, with the S&P 500 shedding ↓ 1.2%. Volume on the Nasdaq surged, reflecting panic selling across semiconductor and cloud‑service stocks. The episode underscores the fragility of the AI‑driven rally as investors await clearer signals on demand sustainability.

Dispatch from Darius Flint (Tactical & Emergency Desk Reporter).