The S&P 500 and the Nasdaq dropped on Monday, as the surging popularity of a low-cost Chinese artificial intelligence model knocked shares of chipmaker Nvidia and other companies benefiting from investments into the technology.

Semiconductor stocks, which form a significant part of the Nasdaq index, have been hit the hardest. Nvidia, a leader in AI and chip manufacturing, saw its stock fall nearly 11% in premarket trading. Other tech players,

DeepSeek's emergence is shaking up investor confidence of the AI story that has been lifting the U.S. bull market in the past two years.