DeepSeek AI Breakthrough Triggers Tech Sell-Off, Boosts AT&T
Key Points:
* Tech sell-off in midday trading as Chinese startup DeepSeek unveils low-cost AI language model.
* Chip makers, energy providers, and other AI-related stocks suffer losses.
* AT&T surpasses profit and sales estimates with subscriber growth.
Stock Market Movement:
* Nasdaq plummets 3%, S&P 500 drops 2%, Dow Jones slightly down.
* AI chipmakers, power providers, Microsoft, and Alphabet shares tumble.
* Apple shares rise on App Store success.
Industry Impact:
* DeepSeek's AI language model shakes up the sector with lower production costs.
* AI chipmakers and power providers affected by uncertainty over data center demand.
* Competition intensifies as tech giants invest heavily in AI development.
Other News:
* Akero Therapeutics stock surges 100% on positive Phase 2b results for liver disease treatment.
* Oil and gold futures decline.
* 10-year Treasury note yield dips as investors seek refuge in bonds.
* U.S. dollar weakens against yen, stable against pound and euro.
* Major cryptocurrencies lose value, with Bitcoin trading below $100,000.