The S&P 500 and the Nasdaq hit over one-week lows on Monday, as the surging popularity of a low-cost Chinese artificial intelligence model knocked shares of chipmaker Nvidia and other companies benefiting from investments into the technology.

American AI stocks got sucker punched after China's DeepSeek app reportedly showed advancements against rivals sending investors into sell mode, shaving 3% off the Nasdaq.

Nvidia drops 6% as the Trump administration considers new restrictions on AI chip sales to China, raising concerns over U.S.-China tech tensions.