The recent advancements in A.I. technology by Chinese company DeepSeek triggered a massive sell-off in U.S. tech stocks, erasing hundreds of billions from market valuations. This decline affected not only American markets but also European and Japanese indexes. Major players like Nvidia saw a significant drop in share prices, leading to substantial losses in market value. The overall tech sector has been under pressure, contrasting with gains in other major sectors, which has impacted the S&P 500's performance as well. Investors are reevaluating corporate valuations given the competitive A.I. landscape.
A.I. advances by Chinese upstarts rattled U.S. markets yesterday, wiping hundreds of billions of dollars from the leading tech indexes. Falling tech stocks also dented market indexes in Europe and Japan.
The news prompted investors to rethink the valuations of companies like Nvidia, whose equipment powers the most advanced A.I. systems.
Shares of Microsoft and Alphabet, both of which have bet heavily on A.I., fell yesterday by 2.1 percent and 4.2 percent, respectively.
Nvidia's shares plunged 17 percent, and the company lost roughly $600 billion in market value, marking its worst trading day since the pandemic sell-off.
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