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How China's DeepSeek shook up US markets, by the numbers

Jan 27, 2025 - financialpost.com
News from China on Monday disrupted U.S. markets, particularly affecting the tech sector. A Chinese company, DeepSeek, announced the development of a large language model that rivals U.S. AI giants at a lower cost. This announcement led to a significant decline in the S&P 500 tech sector, with Nvidia experiencing a notable market value drop of approximately $590 billion. Other tech stocks like Broadcom and Alphabet also saw declines, while Nvidia's CEO Jensen Huang's net worth decreased by $20.8 billion.

Despite the tech sector's downturn, 351 stocks in the S&P 500 rose, highlighting the tech sector's outsized influence. The Dow Jones Industrial Average, less tech-focused, managed a modest gain. The selloff also impacted Oracle CEO Larry Ellison's net worth, which fell by $27.6 billion. Meanwhile, Vistra Corp., a non-tech company, saw the largest drop in the S&P 500, reflecting the broader market's volatility amid AI infrastructure expectations.

Key takeaways:

  • DeepSeek, a Chinese company, developed a large language model that competes with U.S. AI giants at a lower cost, impacting U.S. markets.
  • The S&P 500 tech sector experienced a 5.6% decline, the largest since September 2020, with Nvidia among the hardest hit.
  • Nvidia's market value dropped by approximately $590 billion, and Oracle CEO Larry Ellison's net worth fell by $27.6 billion.
  • Despite the tech sector's decline, 351 stocks in the S&P 500 rose, highlighting the tech sector's significant influence on the index.
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