Wall Street sinks as investors weigh China challenge to US dominance in AI. Nvidia tumbles 10%.

NEW YORK (AP) — Wall Street is tumbling on fears the big U.S. companies that have feasted on the artificial-intelligence frenzy are under threat from a competitor in China.

The S&P 500 fell 1.8% in early trading Monday.

Big Tech stocks that have been the market’s biggest stars took the heaviest losses, with Nvidia down 10%, and they dragged the Nasdaq composite down 3.1%.

The Dow Jones Industrial Average, which holds less tech, held up better with a drop of 0.3%. A Chinese company called DeepSeek said it had developed a large language model that can compete with U.S. giants at a fraction of the cost.

Originally Published: January 27, 2025 at 9:49 AM EST