US markets fell yesterday, weighed down by a slump in chipmaker Nvidia as investors focused on data pointing to a cooling US economy. The Nasdaq tumbled 2.8% to 18,544 points. It was the Nasdaq’s deepest one-day percentage drop in a month. The S&P 500 dropped 1.6% to end at 5,861 points. The Dow Jones Industrial Average declined 0.5% to 43,240.

Nvidia tumbled 8.5 percent, evaporating 274 billion dollars in stock market value, after the Silicon Valley company gave a weaker-than-expected quarterly forecast. The launch of low-cost artificial intelligence models from China’s DeepSeek in January has cooled Wall Street’s AI rally. With Nvidia’s results and outlook failing to impress investors, its stock has now fallen almost 20% from its record-high close.

Also weighing on investor sentiment, data showed jobless claims jumped more than expected in the previous week, while another report reiterated that economic growth slowed in the fourth quarter. Yesterday’s data follows reports over the past week that suggested the economy was stalling, fears of which have also put all three major US indexes on track for monthly declines.