T&G Market Recap: Nasdaq Takes a Hit as AI Fears Spark $1 Trillion Sell-Off 📉💥

DeepSeek’s Challenge to US AI Dominance Rattles Markets; Trump’s Tariff Threats and the Fed’s Next Move Add to the Drama🏛️

The stock market saw a sharp downturn on Monday, driven by growing concerns over the future of artificial intelligence (AI). Here’s what happened:

• Nasdaq fell over 3%.

• Nvidia (NVDA) dropped nearly 17%, wiping out a record $589 billion in market value.

• The Dow Jones bucked the trend, rising more than 0.6%, as investors sought refuge in defensive sectors like healthcare and consumer staples.

The plunge in tech stocks was triggered by DeepSeek, a Chinese AI startup that claimed to have developed a more efficient, cost-effective AI model. This revelation raised doubts about the future profitability of major US tech companies heavily invested in AI.