Nasdaq drops 3% as China's DeepSeek AI model hits tech shares

Nasdaq experienced its largest single-day percentage drop since December 18, mainly due to a selloff in U.S. chipmakers triggered by a low-cost Chinese AI model from DeepSeek. Nvidia's significant 17% drop erased $593 billion in market value. Key companies like Microsoft and Google-parent Alphabet also saw declines. The Federal Reserve's upcoming decision on interest rates is highly anticipated.