Tech Market Wobbles After Massive Nvidia Loss

Tech stocks dipped on Tuesday following a historic market cap loss by Nvidia, driven by concerns over a new Chinese AI model's impact. Major indices remained flat. The sell-off reflects uncertainty in AI growth prospects, pressuring firms like Microsoft and Tesla who face crucial earnings reports.

Tech stocks edged lower on Tuesday, with Nvidia's shares down 2% in early trading. This came after the chipmaker faced the largest one-day market capitalization loss ever recorded, triggering a broader market concern over the tech sector's future.

Key U.S. indices like the S&P 500 and Nasdaq mildly fluctuated after a turbulent Monday session, where Nvidia's dramatic 17% plunge wiped out nearly $593 billion. The shockwaves were felt as a Chinese AI model, DeepSeek, stirred investor anxiety over the dominance of current AI leaders.

Investor attention now pivots to the forthcoming earnings announcements from tech giants, including Microsoft, Tesla, and Meta, amid looming concerns about sustained spending in AI infrastructure. Meanwhile, geopolitical tensions, such as potential tariff hikes, continue to influence the market landscape.

(With inputs from agencies.)