| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 44713.58 | 289.33 | 0.65% |
| S&P 500 | 6012.28 | -88.96 | -1.46% |
| Nasdaq | 19341.83 | -612.47 | -3.07% |
| VIX | 17.90 | 3.05 | 20.54% |
| Gold | 2743.10 | -35.80 | -1.29% |
| Oil | 73.10 | -1.56 | -2.09% |
US MARKET
US stocks tumbled on Monday as Chinese AI startup DeepSeek sparked a dramatic reassessment of market expectations for artificial intelligence, hammering tech-heavy indices. The Nasdaq Composite fell over 3%, while the S&P 500 shed nearly 1.5%, reflecting a sharp pullback in sentiment. However, the Dow Jones Industrial Average bucked the trend, gaining 0.6% as investors rotated into defensive sectors.
DeepSeek’s claim of achieving comparable AI performance at significantly lower costs using fewer Nvidia chips sent shockwaves through the sector, casting doubt on the profitability of AI-driven growth. Nvidia shares plunged nearly 17%, erasing a record $589 billion in market value. Chipmakers Broadcom and Micron Technology, along with ASML, also suffered steep losses.
Big Tech wasn’t spared, with Microsoft sliding over 2% and Alphabet and Amazon also retreating. However, some major names, including Apple and Salesforce, rebounded as investors sought relative safety within the broader sell-off.
The tech rout pushed investors toward traditional havens. The 10-year Treasury yield fell 12 basis points to 4.50%, the lowest in over a month, while the yen and Swiss franc gained ground. Meanwhile, the Federal Reserve’s first policy meeting of 2025 begins this week, with officials likely to monitor market volatility and potential trade policy shifts closely. President Donald Trump’s recent tariff threats, though paused following a deal with Colombia, underscore geopolitical risks that could further complicate economic outlooks.
Amid heightened uncertainty, all eyes are on upcoming Big Tech earnings, with results from Apple, Tesla, Meta, and Microsoft expected to provide fresh guidance on the sustainability of AI-driven profits.
Australian shares opened lower today as global markets reeled from concerns surrounding a Chinese artificial intelligence breakthrough. The S&P/ASX 200 fell 0.2 per cent, shedding 12.9 points to 8396 in early trading, reflecting investor caution amid turmoil in technology stocks. The Australian dollar also edged down 0.1 per cent, further underscoring the cautious sentiment.