AI Rout Triggers Nasdaq Slide and Nvidia Plunge Amid Broad Market Sell‑off

AI rout Sends US Equities Tumbling

The broader market reacted to a sweeping AI rout after Chinese firm DeepSeek announced a major breakthrough, unsettling investors. Nasdaq Composite fell ↓ 2.5%, with technology names bearing AI exposure plunging in double‑digit territory. Nvidia shares slid ↓ 16% after the chipmaker warned of weaker demand.

“The sell‑off reflects heightened sensitivity to AI supply‑chain risks,” said a senior analyst at Reuters.

Other AI infrastructure players logged losses exceeding ten percent. The episode echoes market volatility seen during the pandemic era, when uncertainty drove rapid sector rotations. Traders now eye upcoming earnings for signs of stabilization, while the Federal Reserve watches inflation metrics for any policy shift.

Intel provided by: Victor Hale

Equities & Market Dynamics Analyst