AI Rout Sinks Tech Stocks
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Get 24-7 professional answers and live help and access support by phone, email, and in-platform chat. That's how Schwab is here for you to help you trade brilliantly. Learn more at schwab.com slash trading. Here's your closing bell brief for Monday, January 27th. I'm Danny Lewis for The Wall Street Journal. The Nasdaq led a stock market rout after a Chinese artificial intelligence company rattled the industry with its new models.

The tech-heavy Nasdaq fell 612 points, more than 3%. And the S&P 500 dropped 89 points, about 1.5%. But the Dow Jones Industrial Average edged higher, gaining 289 points to close at 44,714. The release of DeepSeek's cheap but high-performing AI models pulled the rug out from under companies riding the AI wave.

especially Nvidia, whose shares tumbled nearly 17%, wiping out almost $600 billion in market cap. Other AI infrastructure companies were hit by double-digit declines. Oracle stock fell almost 14%, Supermicrocomputer lost more than 12.5%, and shares of Taiwan Semiconductor Manufacturing dropped more than 13%. The pullback also hit some of the biggest spenders in AI development.

Google parent Alphabet lost more than 4%, and Microsoft fell 2%. In other individual companies today, Apple and Meta managed to avoid the tech sector sell-off as investors bet the companies would benefit from cheaper AI models. Apple shares rose almost 3.25%, and Meta gained almost 2%. And AT&T shares rallied 6.25% after the telecom company reported better-than-expected earnings and revenue.

It also added more subscribers than expected. We'll have more coverage of the day's news on the WSJ's What's News podcast. You can add it to your playlist on your smart speaker or listen and subscribe wherever you get your podcasts. In the modern enterprise, the CIO is more than just a technology leader. On the fourth episode of Tech Fluential, Deloitte's Lou DiLorenzo talks with Tim Buckley, former CEO and chairman at Vanguard, and John Marcante, former CIO at Vanguard and Deloitte's CIO-in-Residence.

Together, they define what tech leadership can look like and how that can impact the C-suite and the board. Where technology and influence converge, new opportunities can emerge. That's Tech Fluential, a podcast from Deloitte and custom content from WSJ.