Stocks decline due to competition from China's DeepSeek AI startup and global economic concerns.

From Nasdaq
January 27th, 2025 1:44:12 pm:

Stocks across major indices are down, with the S&P 500, Dow Jones, and Nasdaq 100 all experiencing losses. This is attributed to a plunge in technology stocks due to competition from China’s DeepSeek AI startup. Concerns over disruptiveness to the AI business model are highlighted. President Trump’s tariff threats on Colombia and weak China economic data also impact global markets.

US economic news, including positive data on national activity, new home sales, and manufacturing outlook, supports stocks. The upcoming FOMC meeting is anticipated to maintain the current fed funds target range. Earnings season kicks off with tech giants like Microsoft, Tesla, and Apple reporting. Analysts forecast a strong Q4 earnings growth for the S&P 500.

Global markets see declines, with European government bond yields dropping. T-notes rally due to safe-haven buying amid stock selloff. In the US, chip stocks face significant losses following DeepSeek concerns. Cryptocurrency-related stocks and tech companies like ARM Holdings and Oracle also see declines. Defensive healthcare and consumer staple stocks rise amidst broader market selloff.

Specific stock movements include SoFi, GE Vernova, Public Service Enterprise Group, Akero Therapeutics, AT&T, Salesforce, and ServiceNow. Logility Supply Chain Solutions, Crown Castle, Portillo’s, American Tower, and Waste Management also experience notable price changes. Earnings reports for 1/27 include Alexandria Real Estate Equities, AT&T, Brown & Brown Inc, Nucor Corp, and W R Berkley Corp.

Read more at Nasdaq: Stocks Hit by AI Jitters