S&P 500 Sees 19% Drop Amid AI Stock Turmoil

The recent stock market downturn has particularly impacted AI stocks, with significant declines tied to the Trump administration's tariff announcements and high valuations across the sector. Analysts noted that while the S&P 500 has experienced substantial volatility, companies like AppLovin and Datadog remain seen as oversold, with potential for recovery based on strong future demand for AI solutions. Experts highlight the uncertainty in the market, exacerbated by news related to DeepSeek, which indicated lower costs for training large language models and contributed to the sell-off. Despite the current market fears, some investors are optimistic, viewing this as a long-term opportunity, particularly for major players like Amazon and Alphabet, who are well-positioned in cloud computing. Furthermore, there is a belief that AI will continue to drive significant innovation and growth across various industries, making it a pivotal investment domain. Overall, while immediate concerns linger, the long-term prospects for AI investments remain robust, suggesting potential for recovery and growth.