Nasdaq futures drop as Chinese AI startup DeepSeek threatens Silicon Valley dominance

US tech futures plunged, driven by concerns that AI models from Chinese startup DeepSeek could disrupt America's technological leadership.

Nasdaq 100 futures plunged amid concerns that AI models from Chinese startup DeepSeek may disrupt US tech dominance, News.Az reports, citing Bloomberg.

It’s expected to challenge Silicon Valley valuations, Aletheia Capital said. Tech shares dragged the Nikkei 225 lower.

Investor (and former software engineer) Marc Andreessen called the release of the company’s R1 model, which is now the top app on Apple’s iPhone download charts, “one of the most amazing and impressive breakthroughs.” The startup was founded by Chinese hedge fund manager Liang Wenfeng.

Donald Trump rescinded tariff threats on Colombia after the country agreed to take back undocumented migrants. Trump rattled global markets earlier when he ordered his administration to impose sanctions on the nation for refusing to receive deportees.

Business activity slumped at British firms and profit warnings have risen, according to two reports that say each trend is the worst it’s been since the pandemic. Prime Minister Keir Starmer discussed trade with Trump and agreed to meet soon.

Investors are heading into a Big Tech earnings cycle with a key distinction this time: Tech giants’ profit growth may come in at the slowest in almost two years.

- Shares of Alphabet, Meta and others have rallied to start the year, outperforming the broader market, but the reporting period that kicks off this week may prove sobering for equities bulls.

- Profits for the Magnificent Seven are projected to increase by 22% on year in the fourth quarter, the least since the beginning of 2023.

News.Az