Stocks Sink in Broad AI Rout Sparked by China's DeepSeek

Global markets were rattled on September 13, 2026, as a sharp AI-driven selloff swept through tech stocks, with investors reacting to reports that China's DeepSeek had unveiled a new wave of low-cost, high-performance AI models. The news triggered fears that the current AI boom, long fueled by massive capital spending and sky-high valuations, may be facing its first major reality check.

From Wall Street to Asia-Pacific trading floors, chipmakers, cloud giants, and AI darlings slid as traders rushed to reassess which companies can survive a faster, cheaper AI arms race. Analysts called it a 'DeepSeek shock,' warning that the rout could mark the beginning of a more brutal phase in the AI economy — one where hype no longer guarantees gains.