Market Volatility Persists as AI Fears Grip Investors
The stock market is still reeling from yesterday’s sharp decline, with indices struggling to regain lost ground. As trading commenced, the S&P 500 eked out a modest 0.2% gain, while the Nasdaq Composite fared slightly better with a 0.4% increase. Meanwhile, the Dow Jones Industrial Average hovered around breakeven, unable to muster significant momentum.
A Record Close Slips Away
Last week’s record-breaking S&P 500 close seems like a distant memory now, as the index pulled back in the face of mounting uncertainty. The Nasdaq, which plummeted over 3% on Monday, continues to feel the pressure. The primary catalyst behind this selloff is the growing unease surrounding Chinese AI startup DeepSeek.
The AI Chatbot That Sparked Fear
DeepSeek’s recent release of a chatbot, which swiftly rose to the top of the Apple App Store, has investors on edge. Despite utilizing less powerful hardware and inferior chips, the chatbot appears to hold its own against OpenAI’s ChatGPT. This unexpected development has sparked concerns about the potential disruption of the AI landscape.
Fears of Disruption Grip the Market
As investors grapple with the implications of DeepSeek’s breakthrough, fears about the future of AI-related stocks are running high. The market’s inability to shake off these concerns has resulted in a prolonged period of volatility, leaving many wondering when stability will return.
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