The Nasdaq & S&P 500 fell after Chinese startup DeepSeek shows AI can be built cheaply, sparking fears AI spending will stall. The blue-chip Dow rose.

The S&P 500 and the Nasdaq dropped on Monday, as the surging popularity of a low-cost Chinese artificial intelligence model knocked shares of chipmaker Nvidia and other companies benefiting from investments into the technology.

Nasdaq posted its biggest one-day percentage drop since Dec. 18 on Monday as a low-cost Chinese artificial intelligence model prompted a steep selloff in U.S. chipmakers. AI leader Nvidia sank 17%, and it erased about $593 billion in stock market value,

The Nasdaq Composite fell sharply on Monday after a Chinese artificial intelligence start-up had Wall Street rethinking many assumptions underpinning the AI stock rally. The tech-heavy index sank 3.1%.

The tech-heavy Nasdaq slipped 3% Monday afternoon as a perceived threat from Chinese artificial intelligence startup DeepSeek prompted a global sell-off of tech stocks.

Good morning. US tech futures plunge as a Chinese AI newcomer threatens to shake things up. Donald Trump briefly proposes tariffs on Colombia. And Elon Musk’s Department of Government Efficiency is now hiring.

NVIDIA Corporation (NASDAQ:NVDA), a leading player in the semiconductor industry, has been at the forefront of the artificial intelligence (AI) revolution, driving significant growth in its stock value and market position.

The S&P 500 and the Nasdaq ended sharply lower on Monday as Nvidia and other chipmakers sold off after surging popularity of a low-cost Chinese artificial intelligence model raised investor worries about the outlooks for current AI leaders in the United States.

Futures linked to the tech-heavy Nasdaq tumbled on Monday as the overwhelming popularity of an inexpensive Chinese artificial intelligence model sparked a selloff in AI-related shares, with megacap stocks including Nvidia the worst hit.

By Shashwat Chauhan and Sukriti Gupta (Reuters) -Futures linked to the tech-heavy Nasdaq tumbled on Monday as the surging popularity of a low-cost Chinese artificial intelligence model sparked a selloff in chipmaker Nvidia and other companies that stand to benefit from investments into the technology.

Chinese AI startup DeepSeek sparked a rout in U.S. technology stocks as its highly competitive and potentially much cheaper models stoked doubts about the billions that the big U.S. tech companies are spending on AI.