At left, the Chinese flag is raised for the national anthem during the Paris 2024 Olympic Summer Games, Jul 27, 2024 in Chateauroux, France. Opposite, a Mechatronics automation system at the NXP Advanced Manufacturing Lab at ACC Highland Campus on Thursday August 29, 2024.
© Jack Gruber-Imagn Images + © Jay Janner/American-Statesman / USA TODAY NETWORK
(New York, NY) – Throughout 2024, especially after the election of President Trump, the tech sector roared and carried share prices higher on Wall Street. But on Monday, stocks wobbled, and the tech sector sold off in a big way. During the market’s bull run, stocks linked to artificial intelligence (AI) soared. That includes names like NVIDIA and Microsoft — which have been outperforming the broader market — as many investors speculate AI will explode in prominence and importance over the next decade.
So what caused the downturn on Monday? A startup from China. DeepSeek, which is also tied to AI, made a big announcement. Apparently it’s less-expensive AI model has outperformed OpenAI in third party tests. During pre-market trading, NVIDIA saw its share price down significantly, and that included during open market trading.
The tech-heavy NASDAQ Composite was down over 600 points at times. The S&P 500 was also in negative territory while the Dow posted gains after being down at the start of trading. Amid its big announcement and investor buzz, DeepSeek reported it was dealing with attacks on its services — and temporarily limiting new users.
