AI Shockwave Sends Nasdaq Plunging 2.5% Amid DeepSeek Fallout
The Nasdaq slid 2.5% in early trade as the AI sell‑off triggered by China’s DeepSeek announcement reverberated across U.S. equities. Heavyweights in AI infrastructure recorded double‑digit losses, while Nvidia, the sector’s bellwether, tumbled 16% after issuing guidance that fell short of expectations. The sharp correction underscores persistent uncertainty over AI supply‑chain dynamics and the sustainability of recent valuation surges.
Key Takeaways
- Nasdaq decline: Index down 2.5% in early trading, reflecting broad‑based AI‑related pressure.
- Nvidia hit hard: Shares fell 16% following weaker‑than‑expected revenue guidance.
- Infrastructure pain: Companies supplying AI hardware and services posted double‑digit percentage losses.
- Catalyst: China’s DeepSeek AI model announcement ignited the sell‑off, raising doubts about global AI demand.
- Market sentiment: Investors are reevaluating growth expectations amid supply‑chain and pricing uncertainties.
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