Nasdaq Drops 1% as Alphabet Leads Tech Selloff Following DeepMind Researcher Departure

TLDR

• Alphabet shares fell over 6% Monday after a key AI researcher left Google’s DeepMind for Anthropic
• John Jumper, a Nobel Prize-winning scientist, is the researcher who departed
• The Nasdaq dropped around 1%, while the Dow rose 0.4% and the S&P 500 fell 0.3%
• Amazon, Meta, and Microsoft all fell 2% or more following the news
• Alphabet was on pace to lose nearly $299 billion in market cap — potentially its biggest single-day loss on record

Alphabet shares took a sharp hit on Monday after news broke that a high-profile AI researcher had left Google’s DeepMind unit to join rival Anthropic.

John Jumper, a senior research scientist and recent Nobel Prize winner, was confirmed as the departure. The news first surfaced on Friday, when US markets were closed for a holiday.

Alphabet Leads Tech Selloff

Alphabet shares were down more than 6% on Monday. At one point, the company was on pace to shed around $299 billion in market cap. That would be its largest single-day loss on record and the fifth largest one-day market cap decline for any US company, according to Dow Jones Market Data.

Alphabet Inc., GOOGL

The selloff spread across big tech. Amazon, Meta Platforms, and Microsoft all dropped 2% or more. Tesla and Apple were the only members of the Magnificent Seven to trade higher on the day.

The Roundhill Magnificent Seven ETF fell 1.7%. The iShares Expanded Tech-Software Sector ETF dropped 1%. The iShares Semiconductor ETF bucked the trend, still up around 2%.

Broader Market Moves

The Nasdaq Composite dropped roughly 1% on the day. The S&P 500 slipped 0.3%. The Dow Jones Industrial Average, which does not include Alphabet, rose around 183 points, or 0.4%.

Markets were also watching US-Iran peace talks. Iran said Monday there had been “encouraging progress” in negotiations in Switzerland, with a roadmap for a final deal agreed within 60 days.

That eased some concern over President Trump’s threat of military strikes if Iran did not curb Hezbollah’s actions against Israel.

Oil prices fell on the news. Brent crude slid around 3% to just above $77 a barrel. West Texas Intermediate crude fell to near $73 a barrel.

In other news, former Federal Reserve Chairman Alan Greenspan died at the age of 100. Greenspan led the Fed for nearly two decades.

Investors are also looking ahead to the May reading of the Personal Consumption Expenditures price index. The data will offer the latest read on inflation as the Fed maintains a hawkish stance on interest rates.

In South Korea, SK Hynix overtook Samsung to become the country’s most valuable listed company, reflecting growing demand in the memory chip sector tied to AI growth.

SpaceX shares fell for a third straight day, adding to pressure on the broader tech space.

The Jumper departure is the latest sign of intense competition for top AI talent between the major technology firms.

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