Wall Street had a rough start to the week on concern that a cheaper artificial intelligence-model from China could threaten the dominance of US technology, spurring a selloff in stocks and a flight to haven assets.
From New York to London and Tokyo, equities got hammered, with the S&P 500 dropping 1.9% and the Nasdaq 100 down 3.1%. The latest AI modeal from Chinese startup DeepSeek rose to the top of the Apple’s appstore charts over the weekend, presenting a visible challenge to costlier models like OpenAI and raising questions over the hundreds of billions in planned spending on the technology by the likes of Microsoft Corp., Meta Platforms Inc. and Alphabet Inc.
Treasuries rallied alongside haven currencies like the yen and the Swiss franc. Bitcoin and other cryptocurrencies tumbled.
Bernstein Research senior semiconductor analyst Stacy Rasgon explains why he thinks Monday’s market reaction may be overdone. Stacy speaks with Tom Keene and Paul Sweeney on Bloomberg Radio.
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