U S. stock markets tumble as investors worry about DeepSeek : NPR

U S. stock markets tumble as investors worry about DeepSeek : NPR

Nvidia, down 13%, accounted for 112 points of the Dow’s loss, while Caterpillar contributed 92 points, and Microsoft’s 2.8% decline took away 79 points. The Nasdaq Composite, which tracks the country’s largest tech firms, plunged more than 3%. The Dow ended up nearly 300 points after falling earlier in the day, and the S&P 500 tumbled almost 1.5%. Bill Clinton was the most successful president, achieving an increase of 151% during his two terms in the White House. Overall, the stock market rose by an average of 51% during Democrat incumbencies, more than twice the size of the Republican increases.

• DeepSeek, a Hangzhou-based startup, is attracting significant attention in the AI industry.
• The Dow Jones Industrial Average rose 289 points, or 0.7%, and the majority of U.S. stocks climbed.
• The threshold for being oversold, which is our cue to look for opportunities to put money to work, is minus 4%.
• The Nasdaq Composite, which tracks the country’s largest tech firms, plunged more than 3%.
• Before Monday’s drop, which was its worst since the 2020 COVID crash, Nvidia’s stock had soared from less than $20 to more than $140 in less than two years, for example.
• If the drop holds, Monday will mark Nvidia’s worst day since March 2020, when the stock fell 18.5% in a single session.

Dow Jones Industrial Average .DJI:Dow Jones Global Indexes

The company gained significant attention when it revealed that training DeepSeek-V3 required under $6 million in computing power, utilizing Nvidia’s H800 chips. This announcement has raised questions about the vast investments U.S. tech companies are making in AI, especially as shares of industry giants like Nvidia have seen declines. DeepSeek’s rise threatens to disrupt the global technology landscape, challenging the dominance of U.S. firms in the field. Losses deepened on Monday as Nvidia (NVDA), a key player in the AI sector, saw a dramatic 17% drop, leading a broader market sell-off. The downturn was sparked by concerns over a new AI model from Chinese startup DeepSeek, which raised questions about the future of AI investment and the emergence of more cost-efficient artificial intelligence technologies.

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The open-source model was first released in December, when the company said it took only two months and less than $6 million to create. The third crash occurred in December 2007 when George W Bush was the president. It had its origins in the deregulation of the financial sector which had occurred in the US after Ronald Reagan became president in 1980. Lax financial regulations led to ever increasingly risky assets and trading practices on Wall Street starting in the real estate market. AGI, as defined by OpenAI, refers to autonomous systems that outperform humans in most economically valuable tasks.

• With Tesla set to release its latest quarterly earnings report, Wall Street thinks the stock can keep rising on a “golden age” for automation and AI.
• DeepSeek’s training costs amounted to just $5.6 million, compared to the more than $100 million spent on OpenAI’s GPT, raising concerns about the financial viability of AI investments moving forward.
• Get the latest updates on US markets, world markets, stock quotes, crypto, commodities and currencies.
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• Other Big Tech stocks also took heavy losses, and they pulled the Nasdaq composite down 3.1% for its worst loss in more than a month.
• Like the Swiss Market Index (SMI), the Dow Jones is a price index.

Nvidia and the market’s favorite tech darlings are getting crushed by DeepSeek’s AI push

Each participant drew questions and shared their insights, knowledge and some personal fun facts that left us inspired about the future of health and wellness. Entrepreneurs come to the NYSE to realize their ideas and change the world. We teamed up with 3M’s Post-it® Brand to encourage future leaders visiting our building to take a step toward making their goals and dreams happen.

Nasdaq 100 drops as AI fears grow, DeepSeek sparks tech sell-off

Although it’s unclear how much High-Flyer has invested in DeepSeek, the hedge fund’s presence in the same office building as DeepSeek and ownership of patents related to AI chip clusters suggest a close partnership. High-Flyer’s AI unit reported owning a cluster of 10,000 A100 chips as of July 2022, further solidifying its commitment to advancing AI technology. The release came just a month after DeepSeek dowmarkets announced that training its latest AI model cost a fraction of what OpenAI spent on its GPT model.

At the end of 2024, Microsoft said it planned $35 billion in investments to build “trusted and secure AI and cloud datacenter infrastructure.” He would have been impeached by Congress had he not resigned in August 1974 following the revelations of the Watergate scandal. Their immense sizes give them huge sway over the S&P 500 and other indexes that give more weight to bigger companies.

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More than 80% of stocks in the Nasdaq 100 retreated in Monday’s premarket, highlighting a significant downturn in tech stocks. The index fell over 4%, with key players like Marvell Technology, Broadcom, Constellation Energy, and Nvidia each suffering losses of more than 11%. The stock market showed mixed results on Monday, with the S&P 500 down 1.7% despite 324 members rising. The selloff was largely driven by a decline in stocks tied to the artificial intelligence sector, with the tech-heavy index hit hard. Recent comparative research shows that countries can pay a high price for populist economic policies.

One effect of this has been to cause a rise in yields on US Treasury long-term bonds, reflecting fears of further inflation. The US has been experiencing a long “bull” stock market, that is rapid growth in stock prices, although this week tech stocks tumbled over the future prospects for US-built AI. The shock to financial markets came from China, where a company called DeepSeek unveiled a large language model that can compete with U.S. giants but at potentially a fraction of the cost. Nvidia lost nearly $600 billion in market value Monday as tech stocks plunged amid fears that Chinese artificial intelligence firm DeepSeek leapfrogged U.S. dominance in AI development. In stock markets abroad, movements for broad indexes across Europe and Asia weren’t as forceful as for the big U.S. tech stocks. Stocks edged 0.1% lower in Shanghai after a survey of manufacturers showed export orders in China dropping to a five-month low.

At least investors will soon get to grill Big Tech companies about DeepSeek and their overall AI strategies. Four of what are often dubbed the Magnificent Seven tech stocks — Meta, Apple, Microsoft and Tesla — are due to report quarterly results this week. Constellation Energy, which inked a deal with Microsoft to restart the Three Mile Island nuclear plant to power artificial intelligence servers, sank 20%. Shares of other power companies seen as AI beneficiaries such as Vistra Energy and NRG Energy also dropped sharply. Siemens Energy, which makes equipment for utility companies, plunged 20%. The sell-off was sparked by advances claimed by China’s DeepSeek, whose outstanding qualities became evident this weekend.

So, it would be well worth Trump studying the history of US stock markets rises and falls, if he wants to avoid a severe economic downturn during his second term. Shiller’s data makes it possible to look at the relationship between who is the president and stock prices since 1925. By examining the performance of the stock market over that period we can identify the extent to which eight Democrat and nine Republican presidents have influenced the growth of the market. The drop comes amid growing concerns over a potential stock bubble tied to artificial intelligence. The catalyst for the sell-off is the recent success of DeepSeek, a Chinese AI startup that has raised questions about the sector’s future investment needs.