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 percent Monday. Big Tech stocks took some of the heaviest losses, with Nvidia down nearly 17 percent, and they dragged the Nasdaq composite down 3.1 percent. 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 percent.
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 percent, to 6,012.28.
The Dow Jones Industrial Average rose 289.33 points, or 0.7 percent, to 44,713.58.
The Nasdaq composite fell 612.47 points, or 3.1 percent, to 19,341.83.
The Russell 2000 index of smaller companies fell 23.71 points, or 1 percent, to 2,284.02.
For the year:
The S&P 500 is up 130.65 points, or 2.2 percent.
The Dow is up 2,169.36 points, or 5.1 percent.
The Nasdaq is up 31.04 points, or 0.2 percent.
The Russell 2000 is up 53.87 points, or 2.4 percent.
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