Market Reacts to DeepSeek's AI Dominance

US stock futures experienced a significant downturn in premarket trading this Monday, primarily due to the disruptive emergence of the Chinese AI company, DeepSeek.

DeepSeek's R1 Model Shakes the Market

The unexpected success of DeepSeek's R1 model, which recently claimed the top spot on the Apple App Store, has led to widespread skepticism regarding the future of capital-intensive AI hardware investments in the US.

Market Indices Show Significant Losses

By 3:28 am ET, the Dow Jones Industrial Average had decreased by 0.83%, equivalent to 366.98 points. Similarly, the Nasdaq 100 fell by 3.01%, and the S&P 500 dropped by 1.83%. Additionally, the euro saw a 0.19% decline against the dollar, trading at 1.04744.