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Nasdaq Drops Again as Chip Slump Deepens

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What Happened in Markets Today

The chip-stock selloff deepened, dragging the tech-heavy Nasdaq down 1.4%. The S&P 500 fell 1%. Investor anxieties over the sustainability of huge AI capital expenditures were deepened by China’s Moonshot AI. The Beijing startup unveiled Kimi K3, a 2.8-trillion-parameter model that claims to outperform U.S. systems, triggering fears of escalating global competition and sending shares of Intel, Applied Materials, Corning, and AMD lower.

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