Wall Street's superstars tumbled Monday as a competitor from China threatened to upend the artificial-intelligence frenzy they've been feasting on.
- The S&P 500 fell 88.96 points, or 1.5%, to 6,012.28.
- The Dow Jones Industrial Average rose 289.33 points, or 0.7%, to 44,713.58
- The Nasdaq composite fell 612.47 points, or 3.1%, to 19,341.83.
Nvidia fell 16.9%, with
more than $500 billion in value wiped out in the biggest market rout in history. Broadcom fell 17.4%. Besides chip companies, utilities hoping to electrify power-hungry AI data centers also tumbled, the
AP reports.
The damage was centered on AI-related stocks, while the rest of the market held up much better. But anyone holding an S&P 500 index fund, as many savers do in their 401(k) accounts, felt the pain because of how influential those tech giants have become on indexes. The shock to financial markets came from China, where a company called DeepSeek unveiled a large language model that can compete with US giants but at potentially a fraction of the cost. There was skepticism about how much DeepSeek will ultimately shake the economy that's built around the AI industry, but the disruption rocked AI-related stocks worldwide.
In Amsterdam, Dutch chipmaking equipment company ASML slid 7%. In Tokyo, Japan's Softbank Group Corp. lost 8.3% to pull closer to where it was before leaping on an announcement trumpeted by the White House that it was joining a partnership to invest up to $500 billion in AI infrastructure. On Wall Street,Constellation Energy lost more than a fifth of its value, 20.9%. The company has said it would restart the shuttered Three Mile Island nuclear power plant to supply power for data centers for Microsoft.
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