NEW YORK.- The S&P 500 and the NASDAQ closed with a strong fall this Monday because NVIDIA and other chips manufacturers suffered liquidations after the growing popularity of a Chinese low-cost artificial intelligence model generated investor concerns about investors about the Perspectives for current artificial intelligence leaders in the United States.
Nvidia’s actions sank while an index of semiconductor actions (chips) had its highest percentage fall in a single day since March 2020.
The Chinese Startup Depseek launched a free assistant that, he says, uses cheaper chips and less data, which raises doubts about the expectations of investors that artificial intelligence drives demand throughout a supply chain from manufacturers of chips to the data centers.
The Deepseek artificial intelligence wizard surpassed his American rival Chatgpt on Monday in downloads at the Apple application store.
Lee: Deepseek accentuates the technological war between China and the US
Kim Forrest, Bokeh Capital Partners Investment Director in Pittsburgh, said there are still many questions about the Deepseek model and its impact.
“Today is a hard defeat for these actions, but I do not necessarily believe that what happens in the short term – the next few days – is what finally assesses them,” he said.
According to preliminary data, the S&P 500 lost 1.44% to 6,013.39 points, while the Nasdaq composite yielded 3.04% to 9,346.83 integers, and Dow Jones receded 0.67% to 44,715.79 points.
NVIDIA and other large companies related to technology promoted strong stock market profits in recent years.
Among other large companies related to technology, Microsoft and Alphabet, the Google parent company also fell, while the manufacturer of artificial intelligence servers Dell Technologies fell sharply.
Data centers also fell, including Digital Realty.
Lee: What is Deepseek and why is the artificial intelligence sector revolutionizing?
Information and public services technology suffer hard blows as international competition for artificial intelligence intensifies
The CBOE Volatility Index, known as the “Fear Indicator” of Wall Street, went up.
This week the results of some large technology companies will be published, including Microsoft.
The financial markets were also digesting the news that the United States and Colombia moved away from the edge of a commercial war on Sunday after the White House said that the South American nation had agreed to receive military planes that transported deported migrants.
Investors are also interested in listening to the Federal Reserve, which is expected to keep their loan rate stable in their first decision on interest rates of the year, which will be announced on Wednesday.
Nvidia said that the advances of China Depseek demonstrate the usefulness of their chips for the Chinese market, and that in the future more of their chips will be needed to meet the demand for Deepseek’s services.
“Deepseek’s work illustrates how new models can be created using that technique, taking advantage of widely available models and computing that fully meets exports control,” said Nvidia in a statement.
With Reuters information
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