S&P 500 Posts Biggest Single-Day Drop Since July on AI Fears
The S&P 500 shed 1.4% and the Nasdaq tumbled 2.5% as artificial intelligence concerns rattled equity markets.
U.S. stock markets suffered their sharpest losses in months on Monday, as anxiety over artificial intelligence weighed heavily on technology shares and dragged broader indexes lower. The S&P 500 fell more than 1.4 percent, marking its steepest single-session decline since July.
The tech-heavy Nasdaq composite bore the brunt of the selloff, plunging nearly 2.5 percent for its worst one-day performance since June. The outsized drop in the Nasdaq reflected how deeply concentrated the losses were in technology and AI-linked stocks, sectors that had previously driven much of the market's recent gains.
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The dual-index decline signals a notable shift in investor sentiment toward AI-related equities, which had been among the market's strongest performers heading into the session. When momentum stocks reverse sharply, the ripple effects tend to amplify losses across the broader market, pulling in sectors beyond technology.
Analysts will likely monitor whether Monday's retreat represents a brief correction or the beginning of a broader reassessment of AI valuations, particularly given that both indexes are retreating from historically elevated levels. The scale of a single-day move of this magnitude often prompts institutional investors to reassess near-term positioning.
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