AI Disrupts Wall Street as Chinese Model Sparks Selloff

Wall Street's major indexes dropped on Monday, triggered by a selloff due to a low-cost Chinese AI model gaining traction. Key players like Nvidia saw stock declines, reflecting anxiety over the impact of this new technology on traditional chipmakers.

Wall Street experienced a downturn on Monday as the rise of a cost-effective Chinese artificial intelligence model led to a selloff in technology stocks, notably affecting Nvidia. The unexpected popularity of this AI model caused anxiety among investors holding shares in chipmaking companies. As a result, the market opened with significant losses.

The Dow Jones Industrial Average decreased by 275.4 points, a 0.62% dip, marking its position at 44,148.84. The S&P 500 also witnessed a fall, losing 132.2 points or 2.17%, starting the day at 5,969.04.​ Meanwhile, Nasdaq Composite saw the heaviest loss, plunging 720.3 points, equivalent to a 3.61% decline, landing at 19,234.042 at the day's start.

This drop mirrors growing concerns among investors about the shifting landscape in AI and its implications for established chipmakers, placing pressure on stocks that have previously benefited from AI-driven technology trends.

(With inputs from agencies.)