The US stock market experienced significant turmoil on January 27, 2025, as a wave of concern swept through investors regarding the impact of emerging AI technologies, particularly DeepSeek AI, on established tech giants like Nvidia. According to reports from various financial sources, the S&P 500 index fell by 2.3%, marking one of its sharpest declines in recent memory. Tech stocks were hit hardest, with Nvidia shares plummeting by over 5% during the trading session. Industry analysts attributed this downturn to fears that DeepSeek AI may disrupt the market by rendering certain existing technologies obsolete. ‘This is a wake-up call for investors to reevaluate their portfolios,’ stated financial analyst Michael Thompkins, emphasizing the need to understand the potential of disruptive technologies. Meanwhile, the Nasdaq Composite Index dipped 3.1%, primarily driven by broad losses in technology and communications sectors. The deepening unease over AI’s rapid advancements has led to heightened volatility across major indices, compelling investors to question the stability of tech-driven equities. Shares of other chipmakers also faced similar declines, driven by apprehension about their competitiveness in an increasingly AI-focused market. With fears looming large, market participants are urged to stay informed about the developments in the AI sector and adjust their investment strategies accordingly.
US Stock Market Plummets Amid DeepSeek AI Fears, Hitting Nvidia and Other Tech Stocks
