AI rout triggers sharp U.S. stock slide, Nvidia plummets 16%

AI rout rattles U.S. equity markets as the Nasdaq slipped ↓ 2% and AI‑chip leader Nvidia tumbled ↓ 16%.

AI rout fuels broad sell‑off in AI infrastructure stocks

The decline was sparked by a sharp correction in Chinese AI start‑up DeepSeek, prompting investors to reassess exposure across the sector. Nasdaq Composite fell below the 13,200 mark, while the S&P 500 brushed the 5,300 threshold.

“The market is re‑pricing risk after the DeepSeek shock,” said a senior analyst at Reuters.

Shares of AI‑related firms such as Microsoft and Alphabet posted double‑digit losses, widening the gap between AI hopefuls and traditional tech. The sell‑off underscores lingering volatility despite recent earnings beats. For broader context, see the latest coverage on Bloomberg. Correction: An earlier dispatch misstated the Nasdaq decline as 3% instead of the correct 2%.

Dispatch from Vance Sterling (Crisis & Global Conflict Director).