Asian Stocks Drop After AI Jitters Hit US Equities: Markets Wrap
Jan 28, 2025 - ndtvprofit.com
Asian stocks experienced a downturn following a significant selloff in U.S. equities, driven by concerns over the artificial intelligence sector. This was triggered by the rise of a low-cost AI model from Chinese startup DeepSeek, which topped Apple's app store, raising doubts about the sustainability of tech valuations. The selloff impacted major tech stocks, with Nvidia suffering a historic market-cap loss. The dollar strengthened after President Trump announced impending tariffs on foreign-produced semiconductors and other goods. Many Asian markets were closed for Lunar New Year, and U.S. equity futures remained stable.
The market's focus is on upcoming earnings from major tech companies like Microsoft and Apple, as investors seek reassurance amid stretched valuations. DeepSeek, founded in 2023, has gained attention for its open-source AI models, which have outperformed competitors like OpenAI's ChatGPT. Key economic events this week include U.S. consumer confidence data, Fed and ECB rate decisions, and earnings reports from major tech firms. The market's reaction to these events will be crucial in determining the direction of tech stocks and overall market sentiment.
Key takeaways:
Asian stocks fell following a selloff in the AI sector, triggered by a Chinese startup's app topping Apple's app store.
The US dollar strengthened after President Trump announced upcoming tariffs on foreign-produced goods.
DeepSeek, a Chinese AI company, gained attention for its open-source AI model, surpassing OpenAI's ChatGPT in popularity.
Global markets are focused on upcoming Big Tech earnings and key economic indicators this week.
