China's DeepSeek Challenges Wall Street's AI Titans

Wall Street's top tech stocks experienced a sharp decline as China's DeepSeek announced a competitively priced AI language model. Major losses hit the S&P 500 with a 1.5% drop and the Nasdaq down 3.1%, while the Dow Jones Industrial Average slightly rose amid non-AI sector stability.

Wall Street's top tech stocks took a tumble following the announcement of a new player in the artificial intelligence arena: China's DeepSeek. The S&P 500 dropped by 1.5% on Monday, with Nvidia seeing a significant 17% decline.

These losses dragged the Nasdaq composite down by 3.1%, highlighting the strain on major companies heavily invested in AI technology. Utilities aiming to support the power demands of AI data centers were also negatively impacted.

Shares in industries outside the AI realm fared better, with the Dow Jones Industrial Average rising by 0.7%. DeepSeek's development of a large language model, potentially at a lower cost than US giants, signals a substantial shift in the industry landscape.

(With inputs from agencies.)