• AI rout ignited by China’s DeepSeek, sending U.S. tech stocks into a slump. • Nasdaq leads decline, falling 1.5% as AI infrastructure names tumble. • AI hardware makers suffer double‑digit drops, with Nvidia alone down 16%. • Broad market sentiment turns cautious, as investors weigh AI risk. • Chinese AI developments continue to influence global tech valuations. • Analysts warn of potential volatility as AI sector matures.
Article Summaries:
- U.S. equity markets fell across the board, with the Nasdaq posting the steepest losses as AI‑infrastructure companies saw sharp declines. Several firms in the sector dropped more than 10%, and Nvidia slid 16% on the day. The rout was triggered by the launch of China’s DeepSeek AI model, which has drawn attention to competition in the AI space and prompted investors to reassess valuations of U.S. AI hardware and software providers. The broader sell‑off reflected concerns that the rapid rise of rival AI technologies could pressure margins and growth prospects for U.S. AI firms.
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