Wall Street Today: Tech-heavy Nasdaq down 3%, Nvidia crashes 12%; What’s behind the US stock market rout? 5 key factors | Stock Market News
Source: Live Mint
U.S. stocks dropped sharply on Monday, led by technology shares, as surging interest in Chinese startup DeepSeek’s low-cost artificial intelligence model raised doubts over the sector’s lofty valuations.
The Dow Jones Industrial Average fell 0.27%, to 44,305, the S&P 500 lost 1.72% to 5,996 and the Nasdaq Composite fell around 3% to 19,342. Nvidia , whose chips are the top choice for powering AI applications, dropped nearly 12% in early trading, while industry peers Broadcom and Marvell Technology fell more than 10% each.
The CBOE Volatility Index, known as Wall Street’s “fear gauge”, hit its highest level since Dec. 20, surging 33% on the day.
What’s driving Wall Street down today?
Here are five key factors that weighs on the US stock market sentiment:
1.China’s AI powerhouse DeepSeek rattles Silicon Valley
DeepSeek, which overtook rival ChatGPT to become the top-rated free application on Apple’s App Store in the U.S., says 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.
