Wall Street’s superstars are tumbling as a competitor from China threatens to upend the artificial-intelligence frenzy they’ve been feasting on.
The S&P 500 fell 1.5% Monday. Big Tech stocks took some of the heaviest losses, with Nvidia down nearly 17%, and they dragged the Nasdaq composite down 3.1%. Besides chip companies, utilities hoping to electrify power-hungry AI data centers also tumbled. Stocks outside of AI-related industries held up much better, and the Dow Jones Industrial Average rose 0.7%.
A Chinese company called DeepSeek said it had developed a large language model that can compete with U.S. giants at perhaps a fraction of the cost.
On Monday:
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.
The Russell 2000 index of smaller companies fell 23.71 points, or 1%, to 2,284.02.
For the year:
The S&P 500 is up 130.65 points, or 2.2%.
The Dow is up 2,169.36 points, or 5.1%.
The Nasdaq is up 31.04 points, or 0.2%.
The Russell 2000 is up 53.87 points, or 2.4%.
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