US Stock Market News Highlights: Wall Street tumbled on Monday, January 27, on fears the big US companies that have feasted on the artificial intelligence (AI) frenzy are threatened by DeepSeek, an AI competitor in China. Big Tech stocks that have been the market’s biggest stars took the heaviest losses, with Nvidia down 17%, dragging the Nasdaq composite down 3% amid fears that a more affordable AI model from China could challenge the dominance of US tech companies.
DeepSeek, which overtook the rival AI platform ChatGPT to become the top-rated free application on Apple’s App Store in the United States, says it uses lower-cost chips and less data, challenging a widespread bet in markets that AI will drive demand along a supply chain from chipmakers to data centres.
DeepSeek’s quick dominance raised questions over Microsoft., Meta Platforms, and Alphabet’s hundreds of billions in planned spending on AI. The recently launched AI model is now seen as a strong rival to those from OpenAI and Meta Platforms Inc., as it is more cost-effective and operates on less powerful chips.
The DeepSeek-V3 model was developed with an investment of $5.6 million, a fraction of the amounts the US tech giants spent. The open-source technology product has quickly risen to the top of Apple Inc.’s App Store rankings.
US Stock Market News Highlights: US stock market ended mixed on Monday, with the Nasdaq posting its biggest one-day percentage drop since December 18, and the S&P 500 registering its biggest one-day percentage fall since January 10.
The Wall Street rout comes after a low-cost Chinese artificial intelligence model DeepSeek’s AI Assistant prompted a steep selloff in US chipmakers.
The Dow Jones Industrial Average gained 289.33 points, or 0.65%, to 44,713.58, while the S&P 500 lost 88.96 points, or 1.46%, to 6,012.28. The Nasdaq Composite closed 612.47 points, or 3.07%, lower at 19,341.83.
Nvidia share price sank 17%, erasing about $593 billion in stock market value, the deepest ever one-day loss for a company on Wall Street, according to LSEG data. Microsoft shares declined 2.1% and Alphabet stock price plunged 4.2%, while Dell Technologies share price dropped 8.7%. Apple shares rallied 3.18%, while Vistra stock dropped 28.3%.
US Stock Market News LIVE: US Treasury yields tumbled to multi-week lows, tracking steep declines in equities, as investors sought the safety of government bonds. The benchmark US 10-year yield dropped 8.5 basis points to 4.538 per cent. That pushed the dollar lower, with safe-haven currencies as the main beneficiaries. The dollar index, which measures the US currency against six peers, fell 0.3 per cent, around its lowest level since December 18.
US Stock Market News LIVE: Prices of exchange-traded funds with outsize exposure to Nvidia plunged in the initial hours of trading on Monday in reaction to news that a Chinese startup has launched a powerful new artificial intelligence model.
Technology market insiders like venture capitalist Marc Andreessen have labeled the emergence of year-old DeepSeek’s model a “Sputnik moment” for U.S. AI companies, most of whose share prices slid on news that downloads of DeepSeek already have overtaken those of US rival ChatGPT on Apple’s online app store.
The four ETFs that offer daily returns of double the gain in Nvidia were hit with the biggest decline, with the GraniteShares 2x Long NVDA Daily ETF nosediving 32.5 per cent. Its leveraged inverse counterpart, which offers investors a gain of double any losses in Nvidia’s stock, soared 31 per cen.
US Stock Market News LIVE: Nvidia has now erased all of its gains since October 2 and is down 21 per cent in two trading sessions. It was the largest public company in the world last week, erasing one fifth of its value in two days. According to experts, the DeepSeek crash erased nearly $1.5 trillion in stock market value—an amount roughly equal to #Spain’s entire GDP.
US Stock Market News LIVE: Oil prices fell about three per cent to a two-week low on Monday, pressured by losses in Wall Street technology and energy stocks, as investors took cover after news of surging interest in Chinese startup DeepSeek’s low-cost artificial intelligence model.
Oil was already down earlier in the session on weak economic data from China and worries that U.S. President Donald Trump’s proposed tariffs could further pressure economic growth and energy demand.
Brent futures fell $2.00, or 2.6 per cent, to $76.50 a barrel by 12:02 p.m. EST (1702 GMT). US West Texas Intermediate (WTI) crude fell $2.06, or 2.8 per cent, to $72.60. Brent was on track for its lowest close since January 8 and WTI for its lowest since December 31.
US Stock Market News LIVE: On Wall Street, the Dow Jones Industrial Average edged up, but the S&P 500 dropped about two per cent, and the tech-heavy Nasdaq Composite slumped about 3.5 per cent. Nvidia, whose chips are the top choice for powering AI applications, dropped about 16 per cent, in line with industry peers Broadcom and Marvell Technology. The dollar index, which measures the US currency against six peers, fell 0.3 per cent, around its lowest level since December 18.
US Stock Market News LIVE: The Nasdaq’s next biggest drag was chip maker Broadcom Inc, down 15%, followed by Microsoft, off 3.7 per cent, and Google parent Alphabet, which fell 2.7 per cent. The Philadelphia semiconductor index tumbled 7.9 per cent, eyeing its biggest percentage drop since March 2020. Their declines followed a sell-off that started in Asia, with Japan’s SoftBank Group finishing down 8.3 per cent, and moved through Europe where ASML fell 7.6 per cent.
US Stock Market News LIVE: In a rush for safety, defensive industries like consumer staples and health care were bid. Treasuries rallied, driving yields to the lowest levels this year. Haven currencies like the yen and the Swiss franc climbed. The crypto world came under heavy pressure, with Bitcoin breaking below $100,000. With big tech getting crushed, US stocks were set for their worst day since the last Federal Reserve decision that roiled trading.
US Stock Market News LIVE: US Treasury yields tumbled to multi-week lows on Monday, tracking steep declines in equities, as investors sought the safety of government bonds. The benchmark US 10-year yield dropped 7.7 basis points (bps) to 4.546 per cent. That pushed the dollar lower, with safe-haven currencies as the main beneficiaries.
US Stock Market News LIVE: European tech shares came under pressure on Monday, after Chinese tech startup DeepSeek’s low-cost artificial intelligence model sparked worries about returns in the AI business and the need for costly chips.
The pan-European STOXX 600 dropped as much as 0.8 per cent earlier in the day, tracking a global market sell-off on concerns about AI investment and tech sector valuations after DeepSeek rolled out a free assistant that it says uses lower-cost chips and less data.
European tech stocks slid 3.4 per cent and were on track for their biggest daily drop since October, with chip equipment maker ASML dropping seven per cent to touch a two-month low and ASM International slumping more than 12 per cent.
Siemens Energy and Schneider Electric, which provides electric hardware for AI infrastructure, sank 19.9 per cent and 9.5 per cent, respectively and were among the weakest performers on the STOXX 600.
US Stock Market News LIVE: Microsoft and Google-parent Alphabet fell 3.8 per cent and 2.8 per cent, respectively, while AI server makers Dell Technologies and Super Micro Computer skid 8.6 per cent and 11.1 per cent.
Power companies, which are expected to see a surge in demand from energy-intensive data centers needed to develop AI technology, also came under pressure. Vistra and GE Vernova tumbled 27.9 per cent and 19.7 per cent, respectively.
Data center operators also tanked, with Digital Realty sliding 12.9 per cent. The Cboe Volatility Index, known as Wall Street’s “fear gauge”, hit its highest since December 20, last up 4.2 points at 19.05.
US Stock Market News LIVE: Sales of new US single-family homes increased more than expected in December, further evidence that housing market activity regained some momentum at the end of 2024, though rising mortgage rates remain a constraint.
The report from the Commerce Department on Monday also showed the rebound in home sales in November was much stronger than initially estimated. It added to data this month that showed single-family housing starts and building permits increased to a 10-month high in December, while sales of previously owned houses also rose to the highest level since February
New home sales rose 3.6 per cent to a seasonally adjusted annual rate of 698,000 units last month, the Commerce Department’s Census Bureau said. The sales pace for November was revised higher to a rate of 674,000 units from the previously reported 664,000 units.
US Stock Market News LIVE: US chip-maker Nvidia led a rout in tech stocks Monday after the emergence of a low-cost Chinese generative AI model that could threaten US dominance in the fast-growing industry.
The chatbot developed by DeepSeek, a startup based in the eastern Chinese city of Hangzhou, has apparently shown the ability to match the capacity of US AI pace-setters for a fraction of the investments made by American companies.
Shares in Nvidia, whose semiconductors power the AI industry, fell more than 15 percent in midday deals on Wall Street, erasing more than $500 billion of its market value. The tech-rich Nasdaq index fell more than three percent.
US Stock Market News LIVE: In Amsterdam, Dutch chip supplier ASML slid 7.4 per cent. In Tokyo, Japan’s Softbank Group Corp. lost 8.3 per cent to pull closer to where it was before leaping on an announcement trumpeted by the White House that it was joining a partnership to invest up to $500 billion in AI infrastructure.
On Wall Street, shares of Constellation Energy lost nearly a fifth of its value, 19.5 per cent. The company has said it would restart the shuttered Three Mile Island nuclear power plant to supply power for data centers for Microsoft.
US Stock Market News LIVE: Oil prices edged lower on Monday as the deal with Colombia reduced immediate concern over oil supply disruptions, though Trump’s muscle-flexing is keeping markets twitchy. US crude fell 1.81 per cent to $73.31 a barrel and Brent dropped to $77.21 per barrel, down 1.64 per cent on the day.
Gold fell 1.14 per cent to $2,739 per ounce. Leading cryptocurrency bitcoin slumped more than 3.9 per ce, dropping below $100,000 for the first time in a week, before bouncing to trade at $100,974.
US Stock Market News LIVE: Canada’s main stock index fell on Monday, as investors shaken by the rising popularity of a Chinese discount artificial intelligence model sold AI-linked stocks.
The Toronto Stock Exchange’s S&P/TSX composite index was down 0.7% at 25,292.46, after nine successive sessions of gains. Canada’s information technology sector declined 2%, dragged by a 15.4% drop in electronics firm Celestica. Metal mining shares also fell 1.8%, tracking losses in gold prices. But capped communication shares helped limit the losses by rising over 1%.
US Stock Market News LIVE: The slide in tech stocks came at a time when the Nasdaq 100 is trading at 27 times estimated forward earnings, which is significantly above its 10-year average of 22. Nvidia, which has led the way on AI technology, has a valuation multiple of 32. The Russell 2000 slipped 0.21. Wall Street’s “fear gauge” — the VIX — soared the most since mid-December to almost 20.
US Stock Market News LIVE: The severity of the selloff in US assets was proportionate to the weightings of AI-enabled firms in the biggest stock indexes. Even after a recent paring to curb their influence, the cohort of Nvdia, Apple Inc., Microsoft Corp., Amazon.com Inc., Meta Platforms Inc., and Alphabet Inc. account for 45 per cent of the Nasdaq 100 Index. It is more than 30 per cent in the S&P 500, leaving both gauges significantly exposed to concerted drops in those names.
US Stock Market News LIVE: Gold prices declined over one per cent on Monday, retreating from near-record highs seen in the last session, as investors liquidated bullion positions along with a broader market sell-off sparked by rising interest in Chinese AI start-up DeepSeek.
Spot gold was down 1.1 per cent at $2,741.39 per ounce as of 10:59 a.m. ET (1559 GMT). Prices had risen to near-record high levels on Friday. US gold futures fell 1.2 per cent to $2,744.40 per ounce. Spot silver fell 0.9 per cent to $30.3 per ounce, after logging a 0.9 per cent increase last week.
The sharp declines in global equity markets have driven risk-averse moves across other asset classes, with US Treasury yields dropping to three-week lows and the dollar index hitting its lowest levels since December 18.
US Stock Market News LIVE: US Treasury yields tumbled to multi-week lows on Monday, tracking steep declines in equities, as investors sought the safety of government bonds, with tech stocks sinking on the emergence of a Chinese discount artificial intelligence model. The benchmark 10-year Treasury yield fell to a four-week low and was last down 7.1 basis points at 4.552 per cent.
Both 20-year and 30-year bond yields also slid to four-week troughs. The rush to bonds came as stocks, particularly tech stocks, fell around the world, as the popularity of a Chinese discount artificial intelligence model DeepSeek jolted investors’ faith in the profitability of AI and the sector’s voracious demand for high-tech chips.
US Stock Market News LIVE: The S&P 500 fell 1.5 per cent. The Nasdaq 100 sank 2.4 per cent. The Dow Jones Industrial Average was little changed. A gauge of the “Magnificent Seven” megacaps slid 2.1 per cent. The Russell 2000 slipped 0.21. Wall Street’s “fear gauge” — the VIX — soared the most since mid-December to almost 20. All focus will be on earnings announcements from the likes of Microsoft Corp. and Apple Inc. this week to restore confidence in the so-called Magnificent Seven group of companies.
US Stock Market News LIVE: DeepSeek, which was developed by a start-up based in the eastern Chinese city of Hangzhou, has shown the ability to match the capacity of AI pace-setters such as Nvidia, which sank more than 11 per cent Monday, giving up some $400 billion in market value.
The tech-rich Nasdaq led major indices lower, falling 2.7 per cent, with AI players Meta, Microsoft and Google parent Alphabet all firmly lower. DeepSeek said they spent only $5.6 million developing their model — peanuts when compared with the billions US tech giants have poured into AI.
US Stock Market News LIVE: In commodities, crude oil futures slipped after Trump called on Friday for the Organization of the Petroleum Exporting Countries (OPEC) to cut oil prices. US crude was down 0.33 per cent to $74.41 a barrel and Brent fell to $78.30 per barrel, down 0.25 per cent on the day.
Gold fell 0.7 per cent to $2,752 per ounce. Leading cryptocurrency bitcoin slumped more than 3.6 per cent, dropping below $100,000 for the first time in a week, before bouncing to trade at $101,276.
US Stock Market News LIVE: The market moves also follow the Donald Trump administration’s high-profile announcement last week that saw OpenAI, SoftBank Group Corp. and Oracle Corp. pledge a $100 billion joint venture called Stargate to build out data centers and AI infrastructure projects around the US.
Worries that big-tech firms may not need to spend as much to train their AI models have sunk the shares of Nvidia, which has been Wall Street’s biggest AI beneficiary over the past two years.
The stock plummeted 12 per cent as of 9:36 a.m. In New York — poised to shed more than $390 billion in market value. Meanwhile, ASML Holding NV — supplier of some of the world’s most advanced chipmaking machines — dropped as much as 12 per cent in Amsterdam.
US Stock Market News LIVE: The market volatility on Monday kicks off a busy week in which both the Federal Reserve and the European Central Bank meet to set interest rates. In commodities, crude oil futures slipped after Trump called on Friday for the Organization of the Petroleum Exporting Countries (OPEC) to cut oil prices.
US Stock Market News LIVE: In Europe, the technology sector led the pan-European STOXX 600 index 0.4 per cent lower, while the blue-chip Euro STOXX 50 dropped one per cent. The STOXX Europe 600 technology index fell 4.4 per cent, its biggest one-day drop since mid-October.
US Stock Market News LIVE: The S&P 500 was down 1.6 per cent in morning trading. Big Tech stocks took some of the heaviest losses, with Nvidia down 11.2 per cent, and they dragged the Nasdaq composite down 2.7 per cent. The Dow Jones Industrial Average, which has less of an emphasis on tech, was holding up better with a dip of 123 points, or 0.3 per cent, as of 9:50 a.m. Eastern time.
US Stock Market News LIVE: All the worries sent a gauge of nervousness among investors holding US stocks toward its biggest jump since August. They also sent investors toward bonds, which can be safer investments than any stock. The rush sent the yield of the 10-year Treasury down to 4.54 per cent from 4.62 per cent late Friday.
It was a sharp turnaround for the AI winners, which had soared in recent years on hopes that all the investment pouring into the industry would lead to a possible remaking of the global economy. Nvidia’s stock had soared from less than $20 to more than $140 in less than two years before Monday’s drop, for example.
Other Big Tech companies had also joined in the frenzy, and their stock prices had benefited too. It was just on Friday that Meta Platforms CEO Mark Zuckerberg was saying he expects to invest up to $65 billion this year, while talking up a massive data center it would build in Manhattan.
US Stock Market News LIVE: President Donald Trump’s weekend dispute with Colombia contributed to the negative market sentiment. Trump initially imposed extensive tariffs on the country but reversed his decision after an agreement was made on the return of deported migrants. Meanwhile, the yield on 10-year US bonds dropped by 12 basis points to 4.50% as investors flocked to safer assets.
US Stock Market News LIVE: “Magnificent Seven companies have lofty valuations and also a very high margin outlook. Cheaper AI could squeeze these profits in the longer term. …Capital spending on AI will likely shape tech outlooks and may overshadow otherwise robust results.”
US Stock Market News LIVE: The rout in Nasdaq futures comes at the start of a big week for earnings from major tech companies including Apple Inc. and Microsoft. Profit growth is expected to have slowed while valuations remain inflated, once again causing concern over the large AI-driven rally in the sector.
Roughly 278,000 Nasdaq 100 futures contracts changed hands by 6:18 a.m. New York time, about three times more than the 30-day average for this time of day, according to data compiled by Bloomberg.
US Stock Market News LIVE: “Launching a competitive (large language) model for consumer use cases is one thing,” Ives wrote in a note to clients. He added, “Launching broader AI infrastructure is a whole other ballgame and nothing with DeepSeek makes us believe anything different.”
US Stock Market News LIVE: Dan Ives, an analyst at Wedbush Securities, stated that although the DeepSeek AI technology is noteworthy, the U.S. tech industry remains significantly ahead of China in terms of AI infrastructure.
US Stock Market News LIVE: European tech stocks were hit hardest in the selloff, with Dutch chip equipment manufacturer ASML plunging 8.7 per cent. Siemens Energy, a major provider of AI infrastructure, fell by 17.7 per cent, and Schneider Electric dropped 8.1 per cent.
US Stock Market News LIVE: Netweb Technologies’ shares, an Indian AI infrastructure company, dropped by up to 13%, reaching ₹1,605 on the BSE, in line with the global market downturn. The company, which generates approximately 15% of its revenue from AI, has established itself as a key player in the AI ecosystem through an OEM partnership with Nvidia.
US Stock Market News LIVE: Power companies, anticipated to experience a rise in demand from energy-hungry data centers required for AI technology development, also declined. Constellation Energy, Vistra, and GE Vernova saw drops ranging from 12.8% to 16.1%.
US Stock Market News LIVE: As of 06:56 a.m. ET, Dow E-minis dropped by 415 points, or 0.93%, S&P 500 E-minis fell by 151.75 points, or 2.47%, and Nasdaq 100 E-minis declined by 928.75 points, or 4.24%.
US Stock Market News LIVE: The buzz around DeepSeek gained momentum over the weekend, with tech analysts noting that the company’s AI model delivers performance on par with the world’s top chatbots, but at a much lower cost. For stock traders, this raises concerns about the inflated valuations of AI-related stocks and Silicon Valley’s business model, which relies heavily on large-scale research and development investments.
US Stock Market News LIVE: In Europe, ASML Holding NV dropped 10%, marking its largest decline since October, which contributed to a 0.6% decline in the Stoxx 600 index.
Asian shares outside of China also suffered, with Japan’s Advantest, a supplier to Nvidia, dropping 8.5%, and chipmaker Tokyo Electron declining by 5%. In India, tech stocks faced significant losses, as the Nifty IT index fell 3.3% on Monday.
US Stock Market News LIVE: On Monday, Bitcoin dropped below $100,000, reaching its lowest point in 11 days. Analysts linked the decline to a wave of caution triggered by the growing popularity of a Chinese artificial intelligence model, which led to a selloff in Western AI-related stocks.
US Stock Market News LIVE: Amid Deepseek fear, other tech stocks like Tesla, Amazon, and Meta also witnessed a significant decline by over 2% during early trading in Europe.
US Stock Market News LIVE: Nvidia Corp. tumbled 7% in U.S. premarket trading, positioning itself for the largest market capitalization drop in its history if the decline persists. Meanwhile, trading activity in Nasdaq 100 futures surged, with volumes approximately four times the 30-day average, according to Bloomberg data.
US Stock Market News LIVE: Nasdaq futures dropped more than 5%, driven by a selloff in U.S. technology stocks amid rising concerns about a more affordable artificial intelligence model from China that could challenge the dominance of U.S. tech companies. Meanwhile, S&P 500 futures declined by up to 3%.
