Stock Bulls Get AI Wake-Up Call in Bruising Plunge: Markets Wrap
- DeepSeek buzz rattles financial markets around the world
- US yields hit lowest this year as tech risk fuels haven bid
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Wall Street had a rough start to the week on concern that a cheap artificial intelligence-model from Chinese startup DeepSeek could make valuations of the technology that has powered the bull market tough to justify.
From New York to London and Tokyo, equities sank. While the slide in the US came after a surge to all-time highs, Monday’s selloff was triggered by a rise of DeepSeek’s latest AI model to the top of the Apple’s appstore. The S&P 500 dropped 1.5% and the Nasdaq 100 sank 3%. A closely watched gauge of chipmakers slid the most since March 2020. Nvidia Corp.’s 17% plunge erased $589 billion from its value — the largest in market history.