DeepSeek wreaks havoc on Wall Street; Nvidia loses massive $593 billion of market value, record one-day loss for any firm

Nvidia lost a massive $593 billion of its market value, a record one-day loss for any company on Wall Street.

This led the tech-heavy NASDAQ to fall 3.7% on Monday. Nvidia was the NASDAQ's biggest drag, with its shares tumbling just under 17% and marking a record one-day loss in market capitalisation for a Wall Street stock, according to LSEG data.

Other losers on the tech-heavy Nasdaq index included Broadcom Inc, which slumped 17.4%, followed Google parent Alphabet, which fell 4.2% and ChatGPT backer Microsoft, which ended 2.1% lower.

"It could mean less demand for chips, less need for a massive build-out of power production to fuel the models, and less need for large-scale data centers."

The report added that the hype around AI has powered a huge inflow of capital into equities in the last 18 months, inflating valuations and lifting stock markets to new highs.

At the close, the Dow Jones Industrial Average rose 0.65% to hit a new one-month high, while the S&P 500 index lost 1.46%. The NASDAQ Composite index was down 3.07%.

The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 20.54% to 17.90.