<h1>AI Stock Slump: DeepSeek's New Model Triggers Major Drops in Nvidia and Nasdaq, Despite Dow's Rise.</h1> Tech stocks, particularly AI-related ones, saw significant declines as a Chinese competitor, DeepSeek, introduced a cost-effective large language model, impacting major companies like Nvidia, which fell nearly 17%. This announcement led to a 3.1% drop in the Nasdaq composite, while the S&P 500 fell 1.5%. Despite the tech sector's downturn, the Dow Jones rose 0.7%. DeepSeek's emergence has raised skepticism due to US chip restrictions on China. The disruption affected global markets, with notable declines in companies like ASML and Softbank. Investors turned to safer bonds, causing a drop in Treasury yields.