Wall Street on Monday was forecast to open sharply lower after the launch of the affordable and low-data Chinese generative AI programme that can outperform big-name rivals like ChatGPT, notably in the United States.
President Donald Trump’s threat to impose huge tariffs on Colombia in retaliation for its refusal to accept deportation flights from the United States is also expected to prove unsettling for the markets.
“US markets are likely to take centre stage today as a slump in the tech sector puts pressure on wider markets,” noted Joshua Mahony, analyst at traders Scope Markets.
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Wall Street already took a hit Friday following the launch of the Chinese DeepSeek artificial intelligence programme last week.
It also comes at the start of a big week for the sector, with several of Silicon Valley’s biggest firms due to release their latest financial results – Meta and Microsoft’s are expected on Wednesday, followed by Apple’s on Thursday.
The following shares experienced a hit today as a result of DeepSeek AI:
Nvidia Corp shares plunged today by 12.3% during premarket trading in the US after Chinese artificial intelligence (AI) startup DeepSeek appeared to provide comparable performance to Western chatbots, but at a fraction of the price, Bloomberg reported.
Broadcom stock price was down by more than 14% in the premarket session on Monday, trading at $244 at the time of writing. The decline came amid investor concern from Chinese startup, DeepSeek, which is seen as a formidable rival to leading AI chipmakers.
Micron Technology’s (MU) stock price suffered a decline of 8.4% after its share price touched $102.72, with a 52-week range of $79.15–$157.54.
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Micron Technology is a semiconductor company that develops technology for consumer devices which trades under the ticker MU on the NASDAQ exchange.
Dell Technologies’ stock price was down by 8.8% with its share price standing at $113.73 at the time of writing this story. Dell is one of the top AI server makers in the world and suffered a market hit due to the introduction of Chinese artificial intelligence (AI) startup DeepSeek’s new digital assistant.
Google-parent Alphabet’s share price fell by 4.6% during pre-trading on Monday after the launch of DeepSeek’s new digital assistant.
Meanwhile, Power companies, which are expected to see a surge in demand from energy-intensive data centres needed to develop AI technology, also slid. Constellation Energy, Vistra, and GE Vernova were down between 12.8% and 16.1%.
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The Cboe Volatility Index, known as Wall Street’s “fear gauge”, hit its highest since Dec.20, last up 6.5 points at 21.34.
At 06:56 a.m. ET, Dow E-minis were down 415 points, or 0.93%, S&P 500 E-minis were down 151.75 points, or 2.47%, and Nasdaq 100 E-minis were down 928.75 points, or 4.24%.
