Nvidia stock plummets 17%, selloff on Wall Street after low-cost Chinese AI DeepSeek | Stock Market News

Wall Street stocks declined sharply on Monday, as the surging popularity of a low-cost Chinese artificial intelligence model sparked a selloff in chip giant Nvidia and other Big Tech companies.

Nvidia stock crashed over 17 per cent.

Among the Big Tech stocks, Microsoft, Meta Platforms and Google-parent Alphabet lost between 2.2 per cent and 3.5 per cent, while AI server makers Dell Technologies and Super Micro Computer dropped 7.2 per cent and 8.9 per cent.

Shares of power companies, which are expected to see a rise in demand from energy-intensive data centers, also crashed. GE Vernova, Constellation Energy and Vistra plunged about 20 per cent each.

At 11:21 a.m. ET, the Dow Jones Industrial Average fell 43.01 points, or 0.10 per cent, to 44,381.24, the S&P 500 lost 107.59 points, or 1.76 per cent, to 5,993.65 and the Nasdaq Composite declined 589.56 points, or 2.95 per cent, to 19,364.74.

At 09:43 a.m. ET, the Dow Jones Industrial Average fell 125.18 points, or 0.28 per cent, to 44,299.07, the S&P 500 lost 108.20 points, or 1.77 per cent, to 5,993.04 and the Nasdaq Composite lost 606.43 points, or 3.04 per cent, to 19,347.87.

At the opening bell, the Dow Jones Industrial Average fell 275.4 points, or 0.62 per cent, to 44,148.84. The S&P 500 fell 132.2 points, or 2.17 per cent, to 5,969.04, while the Nasdaq Composite dropped 720.3 points, or 3.61 per cent, to 19,234.042.

Chinese AI startup

Chinese startup DeepSeek’ low-cost AI model has raised doubts over the chip industry’s lofty valuations.

The AI startup said it uses lower-cost chips and less data, challenging a widespread bet in markets that AI will drive demand along a supply chain from chipmakers to data centers. It overtook rival ChatGPT to become the top-rated free AI application on Apple’s App Store in the US.

AT&T stock outperformed the market, by soaring 6.5 per cent after fourth quarter wireless subscriber growth beat estimates.

The selloff pushed investors toward safe heavens such as bonds. The yield of the 10-year Treasury down to 4.54 per cent from 4.62 per cent late on Friday.

The US dollar lost 1.1 per cent against the Japanese yen and 0.7 per cent against the Swiss franc.

This week, investors will focus on the Federal Reserve’s monetary policy meeting. Its outcome will be declared on Wednesday.

Bullion

Gold prices fell over 1 per cent on Monday on profit booking.

Spot gold was down 1.1 per cent at $2,741.39 per ounce as of 10:59 am ET (1559 GMT). US gold futures  lost 1.2 per cent to $2,744.40 per ounce.

Spot silver fell 0.9 per cent to $30.3 per ounce.

Crude oil

Oil prices dropped on Monday, with Brent falling to $78.30 per barrel, down 0.25 per cent. US crude edged down 0.33 per cent to $74.41 a barrel.