LIVE MARKETS-DeepSeek drags S&P 500, Nasdaq lower but Dow gains

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DEEPSEEK DRAGS S&P 500, NASDAQ LOWER BUT DOW GAINS

The S&P 500 .SPX and Nasdaq .IXIC tumbled on Monday, with the benchmark S&P index suffering its biggest daily percentage drop since Jan. 10 and the Composite its largest decline since Dec. 18 as China's artificial intelligence model stoked concerns about the outlook for U.S. rivals.

The emergence of the low-cost rival called DeepSeek weighed on a host of stocks related to AI, from chipmakers to data center stocks, which have helped propel the S&P 500 to consecutive annual gains of more than 20%.

Nvidia NVDA.O, seen as the leader among chipmakers in AI, plummeted 16.86%, its largest daily percentage drop since March 2020. The PHLX semiconductor index .SOX plunged 9.15%, the biggest decline for the index since March 2020 as well.

Unsurprisingly, tech .SPLRCT was the worst performing of the 11 major sectors on the day, down 5.58% while the defensive consumer staples .SPLRCS rallied 2.85% for its biggest daily percentage gain in nearly two years.

But not all stocks with AI involvement suffered, as Apple AAPL.O advanced 3.18% while Amazon AMZN.O eked out a 0.24% gain. That helped the Dow Industrials buck the trend and close with a modest advance, along with gains in Salesforce CRM.N and UnitedHealth UNH.N.

Below is your closing market snapshot:

(Chuck Mikolajczak)

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FOR MONDAY'S EARLIER LIVE MARKETS POSTS:

THREE RISKS THAT COULD SPUR A 10% CORRECTION - CLICK HERE

AI-TRADE'S NOSE IS BLOODIED, BUT MIGHT OTHER FIGHTERS TAKE ITS PLACE? - CLICK HERE

THAT NEW HOME SMELL: SALES OF NEW SINGLE-FAMILY HOMES BEAT EXPECTATIONS - CLICK HERE

DEEPSEEK SINKS STOCKS IN EARLY TRADE: CLICK HERE

DEEPSEEK THREAT DEEP-SIXING U.S. STOCK FUTURES - CLICK HERE

TOO MUCH UNCERTAINTY TO BE POSITIVE ON TREASURIES - CLICK HERE

WHAT COULD TAKE MARKETS DOWN? - CLICK HERE

DEEPSEEK CONCERNS SET STOXX TECH FOR WORST DAY SINCE OCT - CLICK HERE

BEFORE THE BELL: IT'S RISK OFF IN EUROPE - CLICK HERE

CHINA'S AI CHALLENGER PUTS INVESTORS ON EDGE - CLICK HERE