Tech Stocks Plunge as DeepSeek’s AI Breakthrough Sparks $1 Trillion Market Loss

Benzinga 2025-01-28

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Technology stocks plunged Monday after China’s DeepSeek announced it had trained a sophisticated AI model at a fraction of the cost of Silicon Valley firms, sparking a sharp reversal in the AI rally. Nvidia fell 17%, erasing over $500 billion in market value. The Nasdaq and S&P 500 declined while the Dow Jones Industrial Average posted a modest gain. Oracle, Super Micro Computer, and Broadcom suffered losses contributing to a $1 trillion market wipeout. U.S. Treasury bond prices rose as investors sought safer assets. Bitcoin briefly dipped below $100,000 before rebounding.

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