Chinese AI DeepSeek Shakes Markets: New York Stock Exchange Opens with a Sharp Decline

The New York Stock Exchange started the week with a significant drop, driven by selling pressure on AI-related stocks.

At the opening, the Dow Jones Index fell by 0.62% to 44,148.84 points. The S&P 500 Index dropped by 2.17% to 5,969.04 points, while the Nasdaq Index slid by 3.61% to 19,234.04 points.

The new AI model developed by the Chinese company DeepSeek, which was created with fewer chips and in a shorter timeframe compared to its international competitors, put pressure on the shares of global chip manufacturers, causing a negative trend in the markets at the start of the trading week.

Shares of US chipmakers Nvidia and Broadcom each fell by approximately 12%, contributing significantly to the decline in the indices. As the day progressed, Nvidia’s losses deepened, with its shares dropping as low as 117.26. However, they recovered to 120.30 as of 8:39 PM local time, leaving Nvidia with a daily loss of nearly 16%.

The yield on 10-year US Treasury bonds decreased by 8 basis points to 4.54%, while the VIX Index, also known as the „fear index,“ rose by about 6 points to 20.55, reaching its highest level since December 20.

Analysts noted that the quarterly earnings reports of some major technology companies this week could significantly influence market trends. Additionally, the US Federal Reserve’s (Fed) interest rate decision on Wednesday and statements by Fed Chair Jerome Powell remain key focal points for investors.

Companies set to release their financial results on Wednesday include tech giants such as Meta, Microsoft, Tesla, and IBM. On Friday, US energy companies Chevron and Exxon Mobil will announce their earnings.

Analysts also emphasized that US President Donald Trump’s economic policies, including plans to impose new tariffs, continue to be a primary focus for investors.