The Wall Street superstar has fallen because of the threat of a competitor from China that overturns the frenzy of artificial intelligence that has created a jackpot.
S & P 500 fell 1.7 % on Monday noon trading and headed for the worst one month or more. Big High -Tech stocks have reduced NVIDIA 14.4 %, reduced the heaviest loss of 14.4 %, and reduced Nasdaq Composite to 2.8 %.
However, stocks other than the AI -related industries are much better, and the dowjones’ industrial average decreased only 54 points (0.1 %) as of 11:05 am (16:05 GMT) in New York. DOW has not focused on technology than S & P 500 and NASDAQ, but was temporarily progressing to make a little profit early in the morning.
The shock to the financial market came from China. It stated that a company called DeepSeek has developed a large -scale language model that can compete with US giants at a few minutes.
DeepSeek’s app has already been hit at the top of the Apple’s App Store chart by Monday morning, given that the US government has restricted access to the top AI chips in China. He said that such a feat was particularly impressive.
Silicon Valley venture capitalist Mark and Leisen says in X post on Sunday that DeepSeek’s R1 model is AI’s “SPUTNIK MOMENT” and referring to the release of the Soviet Federation satellite. 1950s.
“Deepseek R1 is one of the most surprisingly impressive breakthroughs I’ve ever seen, and it’s a deep gifts for the world,” he said in another post.
However, skepticism is that Deepseek’s presentation is ultimately shaking in the utility that wants to electrify the enormous data center of the AI supply chain from the chipmakers, which is creating Chipmactors. About whether you are.
“Deepseek’s way to avoid these chip -limit rules and given that information is coming from China, there are many skeptics on this problem, so the ultimately used chips are avoided. It is still unknown whether you have found, “according to the analyst Dan Ives.
Nevertheless, Deepseek’s announcement shaked the stock market around the world.
In Amsterdam, the Dutch chip supplier ASML slides 6.6 %. In Tokyo, Japan’s SoftBank Group Corp has lost 8.3 %, and has announced that he has participated in a partnership that invests up to $ 500 million in the AI infrastructure before the White House jumps.
In Wall Street, the stock of Constellation Energy has set 19 %. The company states that it will restart a closed three -mile nuclear power plant to supply power centers to Microsoft.
All concerns were sent to the bonds. This can be a safer investment than any strain.
“Spread Seven”
This is a sharp conversion for one AI winner. In recent years, we hope that all investments will rebuild the world economy and bring huge profits on the way.
For example, before the decline on Monday, NVIDIA’s shares rose from less than $ 20 to $ 140 in less than two years.
Other leading high -tech companies also participated in frenzy, and their stock prices also benefited. Mark Zuckerberg, a meta platform CEO, said he was expecting to invest up to $ 650 billion this year, with a very large Louisiana data center meta covering a considerable part of Manhattan. While talking, he said he had expected to invest up to $ 650 billion this year.
The small groups of such companies became very dominant, and they became known as “magnificent 7”. According to the S & P Dow Jones index, these companies are more than half of the total return of S & P 500 last year, only Alphabet, Amazon, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, Tesla.
Their immense size gives them a great shaking to the S & P 500 and other indexes that give more weight to large companies. It indicates the risk of betting on only a few victory stocks, which are called “intensive risks” by market experts.
According to Brian Jacobsen, Chief Economist of Annex Wealth Management:
Nevertheless, he suggested that it would not overreaced to the sharp fluctuations on Monday. “There is a possibility that China’s news has been exaggerated, and there is a possibility that recent market movements will be reversed,” said Jacobsen. “The news may be true, but it will present a new investment opportunity.”