The three main US stock indices recorded declines at the beginning of trading in the opening session of the week today, Monday, January 27, as the Nasdaq index led the losses with declines of more than 2.3%, coinciding with a strong wave of selling witnessed by the markets led by the technology sector.
The new artificial intelligence model developed by the Chinese company DeepSeek, which announced at the end of last week that it had launched a model that competes with ChatGPT from OpenAI and LIama3.1 from Meta, raised many questions about American competitiveness in the field of artificial intelligence, as the company claims that it developed the model in only two months at a cost of less than $6 million and with chips that do not exceed two thousand chips, while artificial intelligence companies rely on more than 16 thousand advanced chips produced by Nvidia, which put pressure on the favorite semiconductor company Nvidia.
Technology stocks were under tremendous pressure as markets opened after Nvidia’s losses, as markets began to see the Chinese company as a major threat to American technology dominance and the AI revolution, especially since the competitor uses less energy and needs less chips.
In terms of stock movement, chip stocks led by Nvidia led the declines, as the company’s stock fell by about 12% and is trading at $125, while ASML’s stock fell by about 6%, Broadcom’s stock fell by more than 13%, and Micron’s stock fell by about 10%.
The Dow Jones Industrial Average (Dow) is down by about (45) points or 0.10%, trading at 44.378, while the S&P 500 index is down by about 1.66%, or 101 points, trading at 6.003, while the Nasdaq index is down by (466 points) and recording losses of about 2.34%, trading at 19.488 points.
30/01/2025
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