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U.S. Markets Plunge: S&P 500 Drops 1.2% Amid AI Stock Slump

UPDATE: Major U.S. stock indexes are experiencing significant declines as of December 17, 2025, with Wall Street facing its fourth consecutive loss—marking the worst performance in nearly a month. The S&P 500 plummeted by 1.2%, closing at 6,721.43, while the Dow Jones Industrial Average dropped 0.5% to 47,885.97. The Nasdaq Composite saw the steepest decline, falling 1.8% to 22,693.32.

The downturn is primarily fueled by a continued slump in the artificial intelligence sector, with Nvidia weighing heavily on the S&P 500. Despite some gains in sectors like oil, driven by rising crude prices amid President Donald Trump’s escalating tensions with Venezuela, the overall market sentiment remains bearish.

For the day, the S&P 500 lost 78.83 points, while the Russell 2000 index of smaller companies decreased by 1.1%, or 27.01 points, closing at 2,492.29.

In a broader context, the S&P 500 has declined 105.98 points, or 1.6%, over the past week. The Dow is down 572.08 points, or 1.2%, and the Nasdaq has fallen 501.85 points, or 2.2%. Meanwhile, the Russell 2000 index is down 59.16 points, or 2.3%.

Despite these recent setbacks, the year-to-date performance remains positive. The S&P 500 is up 839.80 points, or 14.3%, while the Dow has risen 5,341.75 points, or 12.6%. The Nasdaq shows an increase of 3,382.53 points, or 17.5%, and the Russell 2000 index has gained 262.14 points, or 11.8%.

Investors are advised to keep a close watch on the AI sector and geopolitical developments as they may further influence market dynamics. The situation is evolving, and more updates are expected as analysts evaluate the impact of these trends on the economy.

Stay tuned for the latest updates on this developing story.

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