S&P 500 and Nasdaq Post Steepest Drops in Months on AI Fears
The S&P 500 shed 1.4% and the Nasdaq tumbled 2.5% in their worst single-day selloffs since summer, driven by artificial intelligence concerns.
U.S. equity markets suffered their sharpest declines in months Monday, as mounting concerns about artificial intelligence rattled investors across the technology sector and beyond. The broad S&P 500 index fell more than 1.4 percent, its steepest one-day loss since July, while the tech-heavy Nasdaq composite plunged nearly 2.5 percent — its worst single-session drop since June.
The selloff underscores how sensitive markets have become to shifts in sentiment around AI, a theme that has dominated Wall Street's imagination and driven a prolonged rally in technology stocks. When confidence in that narrative wavers, the reversal can be swift and broad.
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The Nasdaq's outsized decline relative to the S&P 500 reflects the concentration of AI-linked companies within that index. Technology giants that surged on AI optimism earlier in the year bore a disproportionate share of Monday's losses, amplifying the gap between the two benchmarks.
Analysts will be watching whether the pullback represents a short-term recalibration or the beginning of a broader reassessment of AI-driven valuations that have pushed major indices to elevated levels in recent months. Trading volumes and options activity in the sessions ahead may offer early signals of investor conviction.
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