DeepSeek Disrupts Markets Amid Concerns Over US Tech Dominance
TMTPOST -- The launch of DeepSeek’s latest AI product has sent ripples through global markets, sparking fears about the future dominance of US tech giants like Nvidia Corp. The Chinese firm’s innovative AI model, which operates cost-effectively on reduced-capability chips, has surged to the top of Apple Inc.'s App Store rankings, further intensifying competitive pressures.
S&P 500 futures dropped as much as 1% as of 10:12 a.m. in Hong Kong, with Nasdaq 100 contracts declining by up to 1.9%. These movements extend the losses from Friday’s session, as US equities pulled back after a midweek rally driven by optimism surrounding President Donald Trump’s inauguration.
In contrast, Hong Kong's stock market rose on Monday, with the Hang Seng Tech Index gaining as much as 2% ahead of the Chinese New Year holidays. Meanwhile, in Tokyo, shares of Advantest Corp., a key supplier to Nvidia, plunged by as much as 8.6%. Markets in Taiwan and South Korea remained closed for the holiday.
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